Question
Option 1 Option 2 Chiller capital cost 1,000,000.00 700,000.00 AED Annual maintenance additional maintenance 10,000.00 5,000.00 AED Annual electricity savings 325,000.00 250,000.00 kWh Average electricity
| Option 1 | Option 2 | ||
| Chiller capital cost | 1,000,000.00 | 700,000.00 | AED |
| Annual maintenance additional maintenance | 10,000.00 | 5,000.00 | AED |
| Annual electricity savings | 325,000.00 | 250,000.00 | kWh |
| Average electricity cost | 0.43 | 0.43 | AED/kWh |
| Lifetime | 10 | Years | |
| Discount rate | 3.00% | ||
Write and Expain formulas
Formula to calculate Cash Inflows (net savings)
Formula for PV factor Calculation
Formula for Present Value Calculation
formula for Cumulative NPV
Expain the formulas in detail and give calculation
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Auditing A Risk Analysis Approach
Authors: Larry F. Konrath
5th Edition
032405789X, 9780324057898
