The teachers' office area in the building has problems associated with the air conditioning system. Currently the existing system is centrifugal. The Department of Buildings and Land is evaluating two alternatives to address the situation. The first alternative is to replace the 50-ton chiller, the handler system and its insulation system. The initial costs are as follows: unit cost lifespan Centrifuge 50 tons $33,000 15 years Handlers $47,000 30 years Installation work" $1,400 n/a Initial Installation Materials ** $2,500 n/a Insulation system $22,000 n/a *Reduced to 40% of the original cost in case of equipment replacement. ** The cost of replacement materials is also assumed at 40% of the original cost. The maintenance of the centrifuge consists of Maintenance personnel cost labor duration monthly salary Cleaning every 6 months 1 day 1 technician 1 helper $1,550 $1,515 1 technician 1/2 day Annual maintenance of waterbomb $1,550 $1,515 1 helper Annual visit of manufacturer $1,000 *Reduced to 40% of the original cost in case of equipment replacement. ** The cost of replacement materials is also assumed at 40% of the original cost. The maintenance of the centrifuge consists of Maintenance personnel cost labor duration monthly salary Cleaning every 6 months 1 technician 1 day $1,550 $1,515 1 helper 1 technician Annual maintenance of waterbomb 1/2 day $1,550 $1,515 1 helper Annual visit of manufacturer $1,000 Fan replacement every 3 years 1 technician 1 hour $150 $1,550 $1,515 1 helper The maintenance is carried out by personnel of the Refrigeration Workshop attached to the Department of Buildings and Land of the land. The total hours that a regular employee works in the Enclosure is 1,950 hours per year, al a rate of 7.5 hours per day (They will need to calculate the cost associated with the time staff spends on maintaining this particular piece of equipment) The additional costs associated with the operation of the centrifuge are as follows: Cost item Frequency cost Cold Water Pipe Insulation Replacement every 5 years $22,000 The costs associated with the electricity consumption of the centrifuge system are as follows: The cost of a 50-ton centrifuge for daily electricity consumption is $150 per day. The cost for electricity consumption of the driver is $ 25 per day. The centrifuge system operates continuously. The second alternative is the installation of a system of individual units consisting of four capacitors and 41 consoles The initial costs are as follows: Cost item Unit cost Units Total cost Life span Capacitor MDV 400 $9,000 2 6 years Capacitor MDV MDV 450 $9,700 2. 6 years Consolas 12,000 BTU $700 31 6 years Consolas 19,000 BTU $900 10 6 years Materials*** $35,000 n/a Installation work**** $18,000 n/a Includes materials for the insulation system. The cost of materials for the replacement of the consoles is ignored. Replacement work is reduced to 80% of the original cost. System maintenance consists of lity: Investigate Styles Includes materials for the insulation system. The cost of materials for the replacement of the consoles is ignored. Replacement work is reduced to 80% of the original cost. System maintenance consists of Maintenance work Personnel requirements Units Labor duration Monthly Cost of parts to replace salary Console cleaning and filter replacement once a year 1 technician 41 1.5 hour $30/Units 1 assistant $1,550 $1,515 Condenser cleaning once a year 1 technician 4 1 hour 1 assistant $1,550 $1,515 1 technician 41 VA day Replacement of console removal pump, every 3 years $50/Units 1 assistant $1,550 $1,515 I The maintenance is carried out by personnel of the Refrigeration Workshop attached to the Department of Buildings and Land of the land. The total hours that a regular employee works in the Enclosure is 1,950 hours per year, at a rate of 7.5 hours per day. (They will need to calculate the cost associated with the time staff spends on maintaining this piece of equipment.) the additional costs associated with operating the console system are as follows Cost item Frequency Cost Refrigerant Pipe Insulation Replacement Every 10 years $12,000 The costs associated with the electrical consumption of the console system are as follows: The cost for electricity consumption of the complete console system is $ 175 per day, at the rate of 12 hours per day. Assume that the system will operate for 260 business days annually. 1. Perform a present value analysis to select the best alternative to. a. Consider that the replacements will be for identical units b. The equipment has no residual value C. Analyze a 30-year horizon d. Consider a 6% interest rate 3. Perform a What if analysis for the centrifuge system, changing the life of the centrifuge to 10 years and the handlers to 25 years. 2. Consider that the equipment will be acquired by a manufacturing Industry. to. Assume that the console system previously analyzed will be used to provide air conditioning in a manufacturing Industry. It will be installed in a certain production area that generates an Income of $450,000 gross per year. Operating costs are $125,000 annually. Depreciate the console system, in operational state, using the Straight-Line Method and determine the cash flow after taxes. Calculate the Internal rate of return before and after taxes. perform the scan only for the first time the computer Is installed (first cycle only, depending on the life of the consoles)