Consider two air-conditioning systems with the estimates below. (a) Use AW analysis to determine the sensitivity of the economic decision to MARR values of 4%, 6%, and 8% per year. (b) Develop the spreadsheet functions that will display the six AW values.
 FIGURE 1.png)
(a) By hand:
AW1 = -10,000(A/P,i%,8) - 600 - 100(A/F,i%,8) - 1750(P/F,i%,4)(A/P,i%,8)
AW2 = -17,000(A/P,i%,12) - 150 - 300(A/F,i%,12) - 3000(P/F,i%,6)(A/P,i%,12)
Calculate AW at each MARR value. The decision is sensitive to MARR, changing at
MARR = 6%.
MARR AW1 AW2 Selection
4% $-2318 $-2234 2
6% $-2444 $-2448 1
8% $-2573 $-2673 1
(b) Spreadsheet: The PMT functions are shown; AW values are the same as by hand.
 ANSWER.png)
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