Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help asap please A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360,
help asap please
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,414.00 to install, $5,199.00 to operate per year for 7 years at which time it will be $0id for $7,004,00. The second, RayCool 8 , costs $41,667.00 to install, $2,060.00 to operate per year for 5 years at which time it will be sold for $9,028.00. The firm's cost of capital is 5.33%. What is the equivalent annual cost of the AC360? Assume that there are no taxes. Answer format: Currency: Round to: 2 decimal places. A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,498.00 to install, $5,114.00 to operate per year for 7 years at which time it will be sold for $7,060.00. The second, RayCool 8 , costs $41,057.00 to install, $2,147.00 to operate per year for 5 years at which time it will be sold for $8,974.00. The firm's cost of capital is 5.07%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes. Answer format: Curroncy: Round to: 2 docimal places Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started