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Suppose that you want to buy an equipment for their plant. The following two options are available (see below). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yE, which A/C do you recommend to buy if MARR is 16%. Use PW method Offer B 55,000 Offer A 50,000 Investment Power consumption (kW) Annual revenues 1.6 1.2 19,000 19,400 (RO/year) Life time (yr) Salvage value (RO) 8. 8. 2,000 1,300

Suppose that you want to buy an equipment for their plant. The following two options are available (see below). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yE, which A/C do you recommend to buy if MARR is 16%. Use PW method Offer B 55,000 Offer A 50,000 Investment Power consumption (kW) Annual revenues 1.6 1.2 19,000 19,400 (RO/year) Life time (yr) Salvage value (RO) 8. 8. 2,000 1,300

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Suppose that you want to buy an equipment for their plant. The following two options are available (see below). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yr, which A/C do you recommend to buy if MARR is 16%. Use PW method Offer A Offer B Investment Power consumption (kW) 50,000 55,000 1.6 1.2 Annual revenues 19,000 19,400 (RO/year) Life time (yr) Salvage value (RO) 8 2,000 1,300
Transcribed Image Text:Suppose that you want to buy an equipment for their plant. The following two options are available (see below). If the price of electricity is 0.6 OR/kW-hr and the Ac's are expected to work 4320 hr/yr, which A/C do you recommend to buy if MARR is 16%. Use PW method Offer A Offer B Investment Power consumption (kW) 50,000 55,000 1.6 1.2 Annual revenues 19,000 19,400 (RO/year) Life time (yr) Salvage value (RO) 8 2,000 1,300
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