White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $778,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $172,000. The company's MARR is 25% per year. The equivalent annual cost of the installed equipment is $- 404512.69

White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HVAC, and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was $778,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the installed equipment, if the company can now sell it for $172,000. The company's MARR is 25% per year. The equivalent annual cost of the installed equipment is $- 404512.69

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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