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Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to
Consider two air-conditioning systems with the cash flow estimates as given below. Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year. System Air-Conditioning System 1 Air-Conditioning System 2 First cost, $ -11,000 -15,000 AOC, $ per year -500 -125 Salvage value, $ -100 -300 New compressor and motor cost at midlife, $ -1,400 -3,220 8 12 Life, years A The annual worth of air-conditioning system 1 when the MARR is 4% is $[ The annual worth of air-conditioning system 2 when the MARR is 4% is $ The annual worth of air-conditioning system 1 when the MARR is 6% is $[ The annual worth of air-conditioning system 2 when the MARR is 6% is The annual worth of air-conditioning system 1 when the MARR is 8% is $ The annual worth of air-conditioning system 2 when the MARR is 8% is $ When the MARR is 4% (Click to select) is selected. When the MARR is 6% (Click to select) is selected. When the MARR is 8% (Click to select) is selected.
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