The explanation at the back of the book doesn't make any sense to me. The fact that it is a lvl 1 question confounds me.
Can someone explain this question better?
A) Building and refitting a refrigerator with the new technology is an one time cost. Energy costs you pay over each time period.
The argument is that the energy cost savings over the long term will pay for the refrigerator. Why does building and refitting costs matter since they are fixed, one time, costs that will eventually be paid back by energy savings?
D) I answered D. How they try to explain D away seems to me to be really silly. The argument doesn't really address the effectiveness of the old refrigerator. All it says is that the new ones don't need to work in the cold. How well the old ones work and if they work at all are not said.
Say if the old refrigerator (although it requires cold) works better than the new refrigerator. Well then having the old refrigerator might save you money because you will need fewer of those refrigerators to be as effective.
Am I doing something wrong when I am looking at this question?