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ps33 2 A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs
ps33 2
A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,219.00 to install, $5,008.00 to operate per year for 7 years at which time it will be sold for $6,818.00. The second, RayCool 8, costs $41,250.00 to install, $2,021.00 to operate per year for 5 years at which time it will be sold for $9,038.00. The firms cost of capital is 5.49%. What is the equivalent annual cost of the RayCool8? Assume that there are no taxes.
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