Calculate the breakeven cost of the above air-conditioner

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Reference no: EM13151727

A company is provided with a choice of 2 kinds of air-conditioners of similar capacity of 12,500 kcal/hr. The traditional air-conditioner costs around HK$50,000 with EER of 2.16 kcal/h W and is estimated to use 140 kWh of electricity daily on the average. A new type of air-conditioner employing evaporative cooling for the condenser having EER of 4.66 kcal/h W is estimated to use only 75 kWh of electricity everyday but with additional of 750 liters of water daily on the average. Assume both air-conditioners would have a useful life of 10 years and with similar cost of maintenance and salvage value.

Consider in Hong Kong, the cost of electricity is HK$1/kWh and water costs, calculate the breakeven cost of the above air-conditioner with condenser using evaporative cooling if the MARR is 8% p.a.

Reference no: EM13151727

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