A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years. Electrical cost per kWh is P1.25. Calculate the annual savings in terms of electrical savings if MARR is 15% per year.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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A new airconditioning unit costs P150,000
and will have a salvage value of P15,000
after 5 years. Electrical cost per kWh is
P1.25. Calculate the annual savings in terms
of electrical savings if MARR is 15% per year.
Transcribed Image Text:A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years. Electrical cost per kWh is P1.25. Calculate the annual savings in terms of electrical savings if MARR is 15% per year.
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