Here Are Three Alternatives For The Heating Ventilation And Air Conditioning Hvac System For A Hospital Alternative 2 (51.3 KiB) Viewed 18 times
Here are three alternatives for the heating, ventilation, and air conditioning (HVAC) system for a hospital. Alternatives A B с $2,000,000 $2,300,000 $2,250,000 Purchase and Installation Cost Annual Operating Expense $ 80,000 $ 50,000 $ 70,000 Annual Maintenance Expense 20,000 14,000 12,000 Market Value (Salvage Value) X 0 Y Useful Life (years) 15 18 16 a) Determine X by implementing a straight line (SL) depreciation method with an annual depreciation deduction of $130,000. b) Calculate Y by using a 282.9% declining balance (DB) depreciation method. c) Which alternative do you recommend? Use the coterminated life assumption with a study period of 16 years and MARR of 12% per year. State all other assumptions.
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