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%.

d. Now you remember that the inflation rate is expected to be 10% per year for the foreseeable future. Redo parts (a) and (b). (8 points)