Question
The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the Peoples' Republic of China) has requested that
The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the Peoples' Republic of China) has requested that $500,000 be spent now during construction on software and hardware to improve the efficiency of the environmental control systems. This is expected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment refurbishment costs. a-)Draw cash-flow diagram. b-)Find PW when MARR = 5%. Is this project financially acceptable ? c-)Determine the IRR. Is this project financially acceptable if the MARR = 5% ?
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