Homework Answers
Given,
Present value of Econo-cool Model = $ 350
Electricity bills of Econo-cool model = $ 160 per year
Years for Econo-cool model (n) = 5 years
Present value of Luxury air model = $ 550
Electricity billa of Luxury air model = $ 120 per year
Years for Luxury air model (n) = 8 years
Discount rate (r) = 21% or 0.21
Solution :-
![SS - A1.14358881 (2.1435 8881 ] SS 2.14358881 1.14 358881 - 103.09 – A Annual Cost (A) = $103.09. Now, Equivalent annual cost](http://img.homeworklib.com/questions/99e0fcb0-4719-11ea-a938-358215c747f6.png?x-oss-process=image/resize,w_560)
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Econo-Cool alr conditioners cost $350 to purchase, result In electricity bills of $160 per year, and...
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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...
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