Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mohamad, owner of an residential furnished apartment's in Dubal, performed an economic analysis 4 years ago when he decided to place an new eefficient centrat

image text in transcribed
image text in transcribed
Mohamad, owner of an residential furnished apartment's in Dubal, performed an economic analysis 4 years ago when he decided to place an new eefficient centrat AC unit for each apartments instead of old split units windows type in each room. The estimates used and the annual worth analysits at MARR = 12% are summarized below. Two different AC brands were compared. During a quick review (year 4 of operation), it was obvious that the maintenance costs and repair savings have not followed (and will not follow) the estimates made 4 years ago. In fact, the maintenance contract cost is going from $300 this year (year 4) to $1200 per vear next vear and will then increase 7% per year for the next 6 years. Also, the electrical power sevings for the last 4 years wore $31,312 (year 1), $27,565 ( year 2), $30,493( year3), and $32,903( year 4), as best as Mohamad can dotermine. He believes savings will decrease by $3,349 per year hereatiet. Finally, these 4 -year-old AC units are worth nothing on the market now, so the saivage is zero, not $3000. 91 - With these new estimates. What is the AW of the Imvestment and Salvage value for YORK AC unit? Q2. With these new estimates, What is the FW of the investment and Salvage value for YOPK AC uniti Q3 - With these new estimates, what is the recaiculated AW maintenance cost for the YORK AC units? Q4 - With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units? Q5 - With these new estimates, what is the recalculated Total AW for YORK AC units. Q6. With these new estimates, what is the recalculated Total FW for YORK AC units. Q7 - With these new estimates, what is the recalculated Total PW for YORK AC units. Qif - If these estimates had been made a years ago, would YORK stit have been the economic choice, why explain your answer Q0 - What is difference in cagital recovery amount for the YORK units with those new estimales? Q10 - if MNRR is changed to BW for the upcoming 6 years what will be the Tolal PW for the YORK Lnilts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Theory Practice And Techniques In Bookkeeping Accounting And Auditing

Authors: N/A,

1st Edition

1680947761, 978-1680947762

More Books

Students also viewed these Accounting questions