Equivalent annual cost (EAC) helps in decision making by computing price of an asset to an equivalent annual amount. We can compare cost effectiveness of the two with different life span as follow
Econo-Cool si conditioners cost $320 to purchase.resheetriebes of $150 per year and test for 5 years,...
Econo-Cool air conditioners cost $320 to purchase, result in electricity bills of $154 per year, and last for 5 years. Luxury Air models cost $520, result in electricity bills of $108 per year, and last for 8 years. The discount rate is 25%. a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the Luxury...
Econo-Cool air conditioners cost $320 to purchase, result in electricity bills of $154 per year, and last for 5 years. Luxury Air models cost $520, result in electricity bills of $108 per year, and last for 8 years. The discount rate is 25% a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the Luxury...
Econo-Cool air conditioners cost $350 to purchase, result in electricity bills of $160 per year, and last for 5 years. Luxury Air models cost $550, result in electricity bills of $120 per year, and last for 8 years. The discount rate is 21% a. What is the equivalent annual cost of the Econo-Cool model? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the Luxury...
Econo-Cool air conditioners cost $355 to purchase, result in electricity bills of $161 per year, and last for 5 years. Luxury Air models cost $555, result in electricity bills of $122 per year, and last for 8 years. The discount rate is 20%. a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the Luxury...
URGENT!!!
Econo-Cool air conditioners cost $355 to purchase, result in electricity bills of $161 per year, and last for 5 years. Luxury Air models cost $555, result in electricity bills of $122 per year, and last for 8 years. The discount rate is 20%. a. What is the equivalent annual cost of the Econo-Cool model? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the...
Econo-Cool alr conditioners cost $350 to purchase, result In electricity bills of $160 per year, and last for 5 years. Luxury Air models cost $550, result in electricity bills of $120 per year, and last for 8 years. The discount rate Is 21% a. What Is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Econo-Cool Equivalent annual cost b. What Is the equivalent annual cost of the Luxury...
Econo-Cool air conditioners cost $310 to purchase, result in electricity bills of $152 per year, and last for 5 years. Luxury Air models cost $510, result in electricity bills of $104 per year, and last for 8 years. The discount rate is 22%. a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b.What is the equivalent annual cost of the Luxury Air model? (Do not round...
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Chang.cover Machining...
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be Indicated with a minus sign. Round your Intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Components Changeover Machining...
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity Components Changeover $ 470,000 Number of batches 770 Machining 309,000 Machine hours 8,490 Setups 227,000 Number of setups 160 $ 1,006,000 Finishing Welding $ 182,000...