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please solve accurately and double check before sending answers for (3 year) QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSISTHEN AND NOW - Background and Information

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please solve accurately and double check before sending answers for (3 year)

QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSISTHEN AND NOW - Background and Information Mohamad, owner of an residential furnished apartment's In Dubal, performed an economic analysis 3 years ago when he decided to place an new eefficient central AC unit for each apartments in stead 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, $ -26,000 -36,000 Annual maintenance cost, $ per year -800-300 Salvage value, $ 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. MARR 15% LG York Investment Years and salvage $36,000 $o SO Investment Annual and salvage maintenance 0 $26,000 $o 1 $0 $800 250 $800 350 -$800 450 $800 550 $800 650 $800 7 $2,000 $800 8 Repair Savings $0 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 SO SO Iso Annual Repair maintenance Savings $0 $0 $ $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $27,674.68 $o $0 $o $o 9 10 AW element $6,068 $800 $3,000 $25,000 $7,025 $18,131.35 Total AW 150 |-$800 -$800 250 3$0 450 550 650 7 $2,000 8 -$800 $800 -$800 -$800 -$800 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 SO $0 $0 $o $o $o so $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $27,674.68 Iso 9 SO 10 JAW element $6,068 Total AW $800 $3,000 $25,000 $7,025 $18,131.35 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 $300 this year (year 3) to $1200 per year next year and will then Increase 13% per year for the next 7 years. Also, the electrical power savings for the last 3 years were $31,312 ( year 1). $27,565 (year 2), and $30,493( year3), as best as Mohamad can determine. He believes savings will decrease by $2,199 per year hereafter. Finally, these 3-year-old AC units are worth nothing on the market now, so the salvage is zero, not $3000. 97 - With these new estimates, what is the recalculated Total PW cost for YORK AC units. Q8 - If these estimates had been made 3 years ago, would YORK still have been the economic choice, why explain your answer 99 - What is difference in capital recovery amount for the YORK units with these new estimates? ? Q10 - If MARR is changed to 10% for the upcoming 7 years what will be the Total PW for the YORK units? QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSISTHEN AND NOW - Background and Information Mohamad, owner of an residential furnished apartment's In Dubal, performed an economic analysis 3 years ago when he decided to place an new eefficient central AC unit for each apartments in stead 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, $ -26,000 -36,000 Annual maintenance cost, $ per year -800-300 Salvage value, $ 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. MARR 15% LG York Investment Years and salvage $36,000 $o SO Investment Annual and salvage maintenance 0 $26,000 $o 1 $0 $800 250 $800 350 -$800 450 $800 550 $800 650 $800 7 $2,000 $800 8 Repair Savings $0 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 SO SO Iso Annual Repair maintenance Savings $0 $0 $ $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $300 $35,000 $27,674.68 $o $0 $o $o 9 10 AW element $6,068 $800 $3,000 $25,000 $7,025 $18,131.35 Total AW 150 |-$800 -$800 250 3$0 450 550 650 7 $2,000 8 -$800 $800 -$800 -$800 -$800 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 SO $0 $0 $o $o $o so $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $27,674.68 Iso 9 SO 10 JAW element $6,068 Total AW $800 $3,000 $25,000 $7,025 $18,131.35 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 $300 this year (year 3) to $1200 per year next year and will then Increase 13% per year for the next 7 years. Also, the electrical power savings for the last 3 years were $31,312 ( year 1). $27,565 (year 2), and $30,493( year3), as best as Mohamad can determine. He believes savings will decrease by $2,199 per year hereafter. Finally, these 3-year-old AC units are worth nothing on the market now, so the salvage is zero, not $3000. 97 - With these new estimates, what is the recalculated Total PW cost for YORK AC units. Q8 - If these estimates had been made 3 years ago, would YORK still have been the economic choice, why explain your answer 99 - What is difference in capital recovery amount for the YORK units with these new estimates? ? Q10 - If MARR is changed to 10% for the upcoming 7 years what will be the Total PW for the YORK units

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