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Econo - Cool air conditioners cost $ 3 3 5 to purchase, result in electricity bills of $ 1 5 7 , per year, and
EconoCool air conditioners cost $ to purchase, result in electricity bills of $ per year, and last for years. Luxury Air model cost $ result in electricity bills of $ per year, and last for years. The discount rate is
a What is the equivalent annual cost of the EconoCool model?
Note: Do not round intermediate calculations. Round your answer to decimal places.
tableEconoCoolEquivalent annual cost,$
b What is the equivalent annual cost of the Luxury Air model?
Note: Do not round intermediate calculations. Round your answer to decimal places.
tableLuxury AirEquivalent annual cost,$
c Which model is more costeffective?
EconoCool
Luxury Air
d Now you remember that the inflation rate is expected to be per year for the foreseeable future. What are the equivalent annual cost of the EconoCool and Luxury Air model?
Note: Do not round intermediate calculations. Round your answers to decimal places.
tableEconoCool,Luxury AirEquivalent annual cost,$$
d Which model is more costeffective?
EconoCool
Luxury Air
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