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Question 2: Yanbu Industrial College wants to replace the AC unit in one of the building, and they have two alternativest Option L: Purchase a
Question 2: Yanbu Industrial College wants to replace the AC unit in one of the building, and they have two alternativest Option L: Purchase a new large AC unit for 300,000 the saving from this unit is 20,090 SAR/year with a salvage value of 60,900 SAR, or Option 2: Purchase two small AC units for 450,050 SAR (total), the saving from these unit is 15.000 SAR/year with a salvage value of 45,000 SAR If the MARR for these alternatives is 5%. find the followings: I) The SPP using the simple payback analysis. 2) The future value of money for both alternatives after each corresponding year (or SPP) from part I above. 3) Based on this analysis, which option you recommend? and why
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