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please solve accurately and double check before sending answers QUESTION 1 CASE STUDY ANNUAL WORTH ANALYSISTHEN AND NOW - Background and Information Mohamad, owner of

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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 P2,000 povo P23,000 $0 $0 $3,000 $25,000 $7.025 $18,131.351 $300 $300 $300 $300 10 JAW element $6,068 Total AW $35,000 $35,000 $35,000 $35,000 $27,674.68 -$800 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 $30,4931 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. Q1 - With these new estimates, What is the AW of the Investment and Salvage value for YORK AC unit? Q2. With these new estimates, What is the FW of the Investment and Salvage value for YORK AC unit? Q3 - With these new estimates, what is the recalculated AW maintenance cost for the YORK AC units? 24 - With these new estimates, what is the recalculated PW maintenance cost for the YORK AC 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 P2,000 povo P23,000 $0 $0 $3,000 $25,000 $7.025 $18,131.351 $300 $300 $300 $300 10 JAW element $6,068 Total AW $35,000 $35,000 $35,000 $35,000 $27,674.68 -$800 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 $30,4931 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. Q1 - With these new estimates, What is the AW of the Investment and Salvage value for YORK AC unit? Q2. With these new estimates, What is the FW of the Investment and Salvage value for YORK AC unit? Q3 - With these new estimates, what is the recalculated AW maintenance cost for the YORK AC units? 24 - With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units

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