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QUESTION 1 10 points CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW ackground and Information Mohamad, owner of an residential furnished apartments in Dubai performed an

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QUESTION 1 10 points CASE STUDY ANNUAL WORTH ANALYSIS-THEN AND NOW ackground and Information Mohamad, owner of an residential furnished apartments in Dubai performed an economic analyses when he decided to place a new efficient central AC unit for each apartments instead of old spit units windows type each room. The estimates used and the annual worth analysis at MAR 12 are summarired below. Two different AC brands were compared LG York Cost and installations -26,000-30.000 Annual maintenance costs per year -800 -300 Salvages 2.000 3.000 Electrical power savings. 5 per year 25,000 35.000 Useful life years 7 10 The spreadsheet in below she is the one Mohamad used to the decision. York was the dear choice due to its substantially anger Aw value hence V Cunts were installed MADE 124 The spreadsheet in below sheet is the one Mohamad used to make the decision work was the dear choice due to its substantially larger ve hence York AC units were installed MARIE 12 prepare Years LG Investment Annus and share maintenance Of $26.000 so 1/50 5800 3.50 5800 3150 15800 also 5800 550 5800 Fs80o 757.000 5500 York Investment Repair savings and save maintenance so 550.000 40 50 5:25.000 50 5300 $35.000 525.000 150 5300 $35.000 525.000 50 5300 $35.000 525.000 50 5300 $35.000 525.000 bo 5300 $35.000 $25.000 50 -5300 15.000 525.000 so $300 1635.000 TO 300 35.000 150 5900 $35.000 $3.000 $300 535.000 525.000 $5.30 5300 $35.000 $18.701.17 $29.561.45 so TO well Total Aw 5800 During a quick sof operation, it was obvious that the maintenance costs and repair savings have not followed and will not follows the me maces years ago. In fact, the maintenance contract cost is going from $300 this year ear 5 to 51200 per year not year and with increase cer for the next years up to year 1OL AO the electrical power for the last 5 years were 31312year 525385(year 23 Durview years of operation was that the mantenance costs and reparare not followed and will not follow the estimates made years o in fact the maintenance contract contine from 300 years 1200 per year neat year and will then Derya for the next year up to year 10. Also, the wing for the last years were start). 25.505 (2) 125234 year 26 and 27.545 years bestas Mohamad can determine e beveil decree by 1.200 per year herefter these year-old AC units are worth on the market now. the Sovi, 3000 En Wors with two decimal EXO 551551. SSD 01 with these newestimates. What is the AW of the westment and Savage value for YORK NC 09. With these newestimates. What the Wof the investment and Salvapealse for YORK 03. With the newestimates what is the recalculated Aw maintenance cost for the YORK ACES 9. Wontenewestimates what is the recalculated pw maintenance cost for the YORK os with these newestimate what the reciclated Total W co for YORK AC un with these newestimates what is the calculated Total cost for YORKACURES 07. With these newest What is the recicated Total cost for YORK AC un out these statehod been made 5 years ago, would YORK have been the economic choice when your answer 09 - were in capital recovery amount for the YORK units with these we 10. Med to for the coming year wat will be the total for the you

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