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Dana Hall wants to make sure that all options are being considered. In addition to the option of purchasing the Coldline brand refrigerators ( $
Dana Hall wants to make sure that all options are being considered. In addition to the option of purchasing the Coldline brand refrigerators $ cost per unit, $ installation costs, $ annual savings for five years the s are also considering some lessexpensive models. Westlake brand refrigerators will cost only $ each, and have the same total installation will cost $ to install all new units. These refrigerators will have a useful life of only four years and will produce net cost savings of only $ per year because they are not as energy efficient. A friend who also works in the restaurant industry has told Dana that the Arctic Air units are terrific. Danas research shows that a comparable Arctic Air unit will cost $ per unit, with total installation costs of $ and these refrigerators will last for years; annual cost savings are estimated to be $ Based on an analysis of his companys financial position and goals, Dana has set the discount rate at percent. Some of the stakeholders for the refrigeration project are not very good at understanding the time value of money, so calculate a basic BenefitCost Ratio for each of the projects outlined in the preceding question.
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