申論題

Ⅳ.Questions (41 points) Econo-Cool air conditioners cost $300 to purchase, result in electricity bils of $150 per year, and last for 5 years. Luxury air models cost $500, result in electricity bills of $100 per year, and last for 8 years. The discount rate is 21%.

b. What is the equivalent annual cost of the Luxury air model? (4 points)