Electrical power savings, 5 per year Useful life, years 25,000 35,000 7 10 The spreadsheet in below sheet is the one Mohamad used to make the decision. York was the dear choice due to its substantially larger AW value, hence York AC units were installed. MARR 15% $300 LG nvestment Annual Years and salvage maintenance 0-526,000 $0 1150 -5800 2 so $800 3150 -5800 450 5800 -5800 650 -5800 7 $2,000 5800 8 10 AW element $6,068 5800 Total AW York Annual Repair maintenance savings so SO $35,000 $300 $35,000 5300 $35,000 5300 $35.000 5300 |$35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $27,674,681 Repair Investment savings and salvage SO $36,000 $25,000 $0 $25,000 50 $25,000 50 |$25,000 $0 525,000 50 $25,000 $0 $25,000 50 50 so $3,000 $25,000 $7,025 $18.131.39 Slso During a quick review year 3 of operation, it was obvious that the maintenance costs and repair savings have not followed and will not follow) the estimates made 3 years ago. In fact, the maintenance contract cost is going from 5300 this year (year 3) to $1200 per year next year and will then increase 13% per vear for the next years. Also, the electrical power savings for the last 3 vears were $313127 year 27.565 year 21 CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and Information Mohamad, owner of an residential furnished apartment's in Dubai, performed an economic analysis 3 years ago when he decided to place an new efficient central AC unit for each apartments instead of old split units windows type in each room. The estimates used and the annual worth analysis at MARR - 15% are summarized below. Two different AC brands were compared LG York Cost and installation, 5 -26,000 -36,000 Annual maintenance cost, 5 per year -800-300 Salvage value, 5 2,000 3,000 Electrical power savings, $ per year 25,000 35,000 Useful life. years 7 10 The spreadsheet in below sheet is the one Mohamad used to make the decision. York was the clear choice due to its substantially larger AW value, hence York AC units were installed. During a quick review year 3 of operation. It was obvious that the maintenance costs and repair savings have not followed and will not follow the estimates made 3 years ago. In fact, the maintenance contract cast is going from 300 this year 3) to 51200 per your next year and will then increase 13 per year for the next 7 years. Also, the electrical powers for the last 3 years were $31,312year 1), $27.565 (yet) and $30,493 years as best an Mohamad can determine He believes swings will decrease by 12.190 per year hereafter. Finally, these 3 year old AC units are worth noching on the market now, so the salvage is zero, no 53000 Q! With these new mes What is the AW of the investment and Salveger of YORK AC 02 Will these newestimates What is the Wof the investment and Saba value for YORK ACUM 03. With these news, what is the real AW mencost for the All 04 Win these newestmanes, what is the recalculated manance cost for the YORK AC Os Wisthenewestimates was the recalculated Total W cost for YORK AC units 06. With the newestimates what the recalculated To FW cost for YORK AG Q7. With the newestimates what is the recalculated Tow cost for YORK AC unas 03-Wheetmates had been made 3 years ago would YORK still have been the economicie wyn your answer 09. What is difference in capital recovery around for the YORK in with these newesties? QI MARR is changed to tow for the upcorners wat be the Tora PW for the Yoak Electrical power savings, 5 per year Useful life, years 25,000 35,000 7 10 The spreadsheet in below sheet is the one Mohamad used to make the decision. York was the dear choice due to its substantially larger AW value, hence York AC units were installed. MARR 15% $300 LG nvestment Annual Years and salvage maintenance 0-526,000 $0 1150 -5800 2 so $800 3150 -5800 450 5800 -5800 650 -5800 7 $2,000 5800 8 10 AW element $6,068 5800 Total AW York Annual Repair maintenance savings so SO $35,000 $300 $35,000 5300 $35,000 5300 $35.000 5300 |$35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $27,674,681 Repair Investment savings and salvage SO $36,000 $25,000 $0 $25,000 50 $25,000 50 |$25,000 $0 525,000 50 $25,000 $0 $25,000 50 50 so $3,000 $25,000 $7,025 $18.131.39 Slso During a quick review year 3 of operation, it was obvious that the maintenance costs and repair savings have not followed and will not follow) the estimates made 3 years ago. In fact, the maintenance contract cost is going from 5300 this year (year 3) to $1200 per year next year and will then increase 13% per vear for the next years. Also, the electrical power savings for the last 3 vears were $313127 year 27.565 year 21 CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and Information Mohamad, owner of an residential furnished apartment's in Dubai, performed an economic analysis 3 years ago when he decided to place an new efficient central AC unit for each apartments instead of old split units windows type in each room. The estimates used and the annual worth analysis at MARR - 15% are summarized below. Two different AC brands were compared LG York Cost and installation, 5 -26,000 -36,000 Annual maintenance cost, 5 per year -800-300 Salvage value, 5 2,000 3,000 Electrical power savings, $ per year 25,000 35,000 Useful life. years 7 10 The spreadsheet in below sheet is the one Mohamad used to make the decision. York was the clear choice due to its substantially larger AW value, hence York AC units were installed. During a quick review year 3 of operation. It was obvious that the maintenance costs and repair savings have not followed and will not follow the estimates made 3 years ago. In fact, the maintenance contract cast is going from 300 this year 3) to 51200 per your next year and will then increase 13 per year for the next 7 years. Also, the electrical powers for the last 3 years were $31,312year 1), $27.565 (yet) and $30,493 years as best an Mohamad can determine He believes swings will decrease by 12.190 per year hereafter. Finally, these 3 year old AC units are worth noching on the market now, so the salvage is zero, no 53000 Q! With these new mes What is the AW of the investment and Salveger of YORK AC 02 Will these newestimates What is the Wof the investment and Saba value for YORK ACUM 03. With these news, what is the real AW mencost for the All 04 Win these newestmanes, what is the recalculated manance cost for the YORK AC Os Wisthenewestimates was the recalculated Total W cost for YORK AC units 06. With the newestimates what the recalculated To FW cost for YORK AG Q7. With the newestimates what is the recalculated Tow cost for YORK AC unas 03-Wheetmates had been made 3 years ago would YORK still have been the economicie wyn your answer 09. What is difference in capital recovery around for the YORK in with these newesties? QI MARR is changed to tow for the upcorners wat be the Tora PW for the Yoak