Econo-Cool air conditioners cost $500 to purchase, result in electricity bills of $350 per year, and last for five years

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Econo Cool Air Conditioners Cost 500 To Purchase Result In Electricity Bills Of 350 Per Year And Last For Five Years 1 (153.56 KiB) Viewed 28 times

Econo-Cool air conditioners cost $500 to purchase, result in electricity bills of $350 per year, and last for five years. Luxury Air models cost $700, result in electricity bills of $300 per year, and last for eight 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 answer to 2 decimal places.) b. What is the equivalent annual cost of the Luxury Air model? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Which model is more cost-effective? d. If the inflation rate is expected to be 10% per year for the foreseeable future. What is the equivalent annual cost of the Econo-Cool model and Luxury Air model? (Do not round intermediate calculations. Round your answer to 2 decimal places.) EAC(Econo-Cool Investment & Electricity) b. EAC(Luxury Air Investment & Electricity) a. C. d. Cost effective model EAC(Econo-Cool Investment & Electricity) EAC(Luxury Air Investment & Electricity)