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Johnmark1900, Associate Degree
Category: Multiple Problems
Satisfied Customers: 841
Experience:  I am a qualified Chartered Accountant, working as finance manager for reputable organization
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# Econo-Cool air conditioners cost \$1,400 to purchase, result

### Customer Question

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? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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. Which model is more cost-effective? Econo-cool Luxury Air c-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? (Do not round
intermediate calculations. Round your answers to 2 decimal places.) Equivalent annual real cost to own Econo-cool \$ Plus \$700 (real operating cost) 700.00 -------------------------------------------------------------------------------- \$ --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- Equivalent annual real cost to own Luxury Air \$ Plus \$230 (real operating cost) 230.00 -------------------------------------------------------------------------------- \$ --------------------------------------------------------------------------------
-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- c-2. Which model is more cost-effective? Luxury Air Econo-cooL
Submitted: 2 years ago.
Category: Multiple Problems
Expert:  Johnmark1900 replied 2 years ago.
HelloI can assist you with this also. Let me know your deadline.
Customer: replied 2 years ago.
I would need it as soon as possible, but I noticed this one is closed. I have re-entered this question as new, but if you ar responding to this one, I can go and cancel the other.
Customer: replied 2 years ago.
I have also gone through my last 3 open questions and have placed the following message: "Johnmark if possible, but open to others as well if it is already being worked on." Thank you again!
Expert:  Johnmark1900 replied 2 years ago.
here is your solutionhttps://www.dropbox.com/s/p61kb4mqinhydt0/Econo.xlsx?dl=0Any queries let me know, else POSITIVELY RATEThanx
Expert:  Johnmark1900 replied 2 years ago.
Just follow up, did my solution assisted you. if so please RATE it POSITIVELY as it is the only way i can get credit of my work.thanx