Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz anw Q 9 only. thank you QUESTION 1 10 points CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and information Mohamad owner of an

plz anw Q 9 only.
thank you
image text in transcribed
image text in transcribed
image text in transcribed
QUESTION 1 10 points CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and information Mohamad owner of an residential furnished apartments in Dubai, performed an economic analysis 5 years ago when he decided to place an new eeffent central AC unit for each apartments instead of old split units windows type in each room. The estimates used and the annual worth analysis at MARR - 12% are summarized below. Two different AC brands were compared LG York Cost and installation, -26,000-30,000 Annual maintenance cost $ per year 100-300 Salvage values 2,000 3,000 Electrical power savings. 5 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 der choice oue to its but larger Aw value hence York AC units were installed MARR 12 The spreadsheet in below sheet is the one Mohamad used to make the decision work was the dear choice due to its substantially larger sw value hence York AC units were installed MARA 12 nu years LG Investment and save maintenance of $26.000 SO 1 so 5000 230 5800 350 3000 450 5000 550 5000 50 5500 72.000 5100 Repair Investment savings landse 30 530.000 525.000 50 125.000 50 5:25.000 SO 525.000 so 525.000 125.000 10 $35.000 150 so 50 53000 525.000 55.1) $18.01.17 York Ano Repair maintenance so 5300 525.000 3300 $35.000 $100 $35.000 $300 335.000 5300 5300 135.000 5300 525.000 -5300 15.000 5300 525000 1.300 35.000 5300 $35.000 5.39.50143 10 Want 56.066 YAW 5800 During a quick was of operation. It was obvious that the maintenance costs and repair save not followed and will not follow the estimades years ago. In fact, the maintenance contract costs og trom $100 this year years to 55200 per year your and will then year for the next 4 years up to yoar to. Also, the electrical power wings for the last 5 years were year 11.525.565 year2 During a quick review year 5 of operation), it was obvious that the maintenance costs and repair savings have not followed (and will not follow) the estimates made 5 years ago. In fact, the maintenance contract cost is going from $300 this year (year 5) to $1200 per year next year and will then increase 9% per year for the next 4 years up to year 10). Also, the electrical power savings for the last 5 years were $31,312 year 1), $25,565 (year 2) $25.234 year3), 526,903 year 4), and $27,345 (years) as best as Mohamad can determine. He believes savings will decrease by $1.200 per year hereafter. Finally, these 5-year-old AC units are worth nothing on the market now, so the salvage in is zero, not $3000. Enter the answers with two decimals places (Exp 5515511:56) no dollar sign or commas Q1 - With these new estimates. What is the AW of the Investment and Salvage value for YORK AC unit? 02-With these new estimates, What is the FW of the Investment and Salvage value for YORK AC unite 03 - With these new estimates, what is the recalculated AW maintenance cost for the YORK AC Units? 04. With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units? 05. With these new estimates, what is the recalculated Total Aw cost for YORK AC units, 26 - With these new estimates, what is the recalculated Total Fw cost for YORK AC unit. 07- With these new estimates, what is the recalculated Total PW cost for YORK AC units 08 - If these estimates had been made 5 years ago, would YORK still have been the economic choice, why explain your answer 09 - What is difference in capital recovery amount for the YORK units with these new estimates 010 MARR is changed to 10% for the upcoming 5 years what will be the Total PW for the YORK units QUESTION 1 10 points CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW Background and information Mohamad owner of an residential furnished apartments in Dubai, performed an economic analysis 5 years ago when he decided to place an new eeffent central AC unit for each apartments instead of old split units windows type in each room. The estimates used and the annual worth analysis at MARR - 12% are summarized below. Two different AC brands were compared LG York Cost and installation, -26,000-30,000 Annual maintenance cost $ per year 100-300 Salvage values 2,000 3,000 Electrical power savings. 5 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 der choice oue to its but larger Aw value hence York AC units were installed MARR 12 The spreadsheet in below sheet is the one Mohamad used to make the decision work was the dear choice due to its substantially larger sw value hence York AC units were installed MARA 12 nu years LG Investment and save maintenance of $26.000 SO 1 so 5000 230 5800 350 3000 450 5000 550 5000 50 5500 72.000 5100 Repair Investment savings landse 30 530.000 525.000 50 125.000 50 5:25.000 SO 525.000 so 525.000 125.000 10 $35.000 150 so 50 53000 525.000 55.1) $18.01.17 York Ano Repair maintenance so 5300 525.000 3300 $35.000 $100 $35.000 $300 335.000 5300 5300 135.000 5300 525.000 -5300 15.000 5300 525000 1.300 35.000 5300 $35.000 5.39.50143 10 Want 56.066 YAW 5800 During a quick was of operation. It was obvious that the maintenance costs and repair save not followed and will not follow the estimades years ago. In fact, the maintenance contract costs og trom $100 this year years to 55200 per year your and will then year for the next 4 years up to yoar to. Also, the electrical power wings for the last 5 years were year 11.525.565 year2 During a quick review year 5 of operation), it was obvious that the maintenance costs and repair savings have not followed (and will not follow) the estimates made 5 years ago. In fact, the maintenance contract cost is going from $300 this year (year 5) to $1200 per year next year and will then increase 9% per year for the next 4 years up to year 10). Also, the electrical power savings for the last 5 years were $31,312 year 1), $25,565 (year 2) $25.234 year3), 526,903 year 4), and $27,345 (years) as best as Mohamad can determine. He believes savings will decrease by $1.200 per year hereafter. Finally, these 5-year-old AC units are worth nothing on the market now, so the salvage in is zero, not $3000. Enter the answers with two decimals places (Exp 5515511:56) no dollar sign or commas Q1 - With these new estimates. What is the AW of the Investment and Salvage value for YORK AC unit? 02-With these new estimates, What is the FW of the Investment and Salvage value for YORK AC unite 03 - With these new estimates, what is the recalculated AW maintenance cost for the YORK AC Units? 04. With these new estimates, what is the recalculated PW maintenance cost for the YORK AC units? 05. With these new estimates, what is the recalculated Total Aw cost for YORK AC units, 26 - With these new estimates, what is the recalculated Total Fw cost for YORK AC unit. 07- With these new estimates, what is the recalculated Total PW cost for YORK AC units 08 - If these estimates had been made 5 years ago, would YORK still have been the economic choice, why explain your answer 09 - What is difference in capital recovery amount for the YORK units with these new estimates 010 MARR is changed to 10% for the upcoming 5 years what will be the Total PW for the YORK units

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

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

12th Edition

0324100949, 978-0324100945

More Books

Students also viewed these Accounting questions

Question

1. Offer surprise rewards for good participation in class.

Answered: 1 week ago