Reference no: EM131066280
Econo-Cool air conditioners cost $1,400 to purchase, result in electricity bills of $700 per year, and last for 6 years. Luxury Air models cost $1,600, result in electricity bills of $230 per year, and last for 9 years. The discount rate is 21%
a. What are the equivalent annual costs of the Econo-Cool and Luxury Air models?
Econo-cool costs $1,400 and lasts for 6 years. The annual rental fee with the same PV is___________?
The equivalent annual cost of owning and running Econo-cool is____?
Luxury Air costs $1,600, and lasts for 9 years. Its equivalent annual rental fee is found as____?
The equivalent annual cost of owning and running Luxury Air is____?
b. 1. Now you remember that the inflation rate is expected to be 10% per year for the foreseeable future. What are the equivalent annual costs of the Econo-Cool and Luxury Air models?
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What are the equivalent annual costs of the econo-cool
: Econo-Cool air conditioners cost $1,400 to purchase, result in electricity bills of $700 per year, and last for 6 years. Luxury Air models cost $1,600, result in electricity bills of $230 per year, and last for 9 years. The discount rate is 21%. What..
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