A company is provided with a choice of 2 kinds of air-conditioners of similar ca

ID: 2696007 • Letter: A

Question

A company is provided with a choice of 2 kinds of air-conditioners of similar

capacity of 12,500 kcal/hr. The traditional air-conditioner costs around

HK$50,000 with EER of 2.16 kcal/h W and is estimated to use 140 kWh of

electricity daily on the average. A new type of air-conditioner employing

evaporative cooling for the condenser having EER of 4.66 kcal/h W is estimated

to use only 75 kWh of electricity everyday but with additional of 750 liters of

water daily on the average. Assume both air-conditioners would have a useful

life of 10 years and with similar cost of maintenance and salvage value.

Consider in Hong Kong, the cost of electricity is HK$1/kWh and water costs

HK$4.58/m^3

, calculate the breakeven cost of the above air-conditioner with

condenser using evaporative cooling if the MARR is 8% p.a.

You need to go in a systematic way in order to solve the problem:

1)now it is visible that the fixed investment is same in both cases.

2) Variable investment for both are different.

one needs to calculate this variable investnment for both airconditionar 1, and then air conditioner 2

first one has more electric bill consumption

second has a water bill consumption.

3)assume constant "k" and "c" as the const costs for maintanance and salvage value.

4)get the total fix cost

5)and also get the totral variable cost

6) Now get the total cost for the product by adding both.

Now use the standard breakeven analysis formula to get the answer

I can get you a detailed solution of this but you would have to rate thye answer first.

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