Which air-conditioning system should carla vista purchase

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Carla Vista Manufacturing, Inc., needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $62,000 and is expected to last 10 years, and the second system costs $89,000 and is expected to last 15 years. Assume that the opportunity cost of capital is 10 percent. (Round answers to 2 decimal places, e.g. 5,275.25.)

Equivalent annual cost

  • System 1
  • System 2

Problem 1: Which air-conditioning system should Carla Vista purchase?

Reference no: EM132969547

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