Business, 30.03.2020 16:35 josiesolomonn1615

Cono-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 are the equivalent annual costs of the Econo-Cool models? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. What are the equivalent annual costs of the Luxury Air models? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. Which model is more cost-effective? Econo-Cool Luxury Air

d-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.)

d-2. Which model is more cost-effective? Econo-Cool Luxury Air

Answers: 1

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Cono-Cool air conditioners cost $350 to purchase, result in electricity bills of $160 per year, and...

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