Equivalent annual costs of the econo-cool models

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Reference no: EM132017266

Econo-Cool air conditioners cost $400 to purchase, result in electricity bills of $169 per year, and last for 5 years. Luxury Air models cost $595, result in electricity bills of $138 per year, and last for 8 years. The discount rate is 25%.

a. What are the equivalent annual costs of the Econo-Cool models? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. What are the equivalent annual costs of the Luxury Air models? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Reference no: EM132017266

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