-1,000 -1,200 -1,300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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For equipment that has a first cost of $17,500, the estimated operating costs and year-end salvage values are as
shown.
Year
Operating Cost, $
Salvage Value, $
1
-1,000
7,000
2
-1,200
5,000
-1,300
4,500
-2,000
3,000
-3,000
2,000
Determine the economic service life ESL, at /= 10% per year using factors.
The economic service life ESL, is
years with the AW = $-
SEN
3
4
5
Transcribed Image Text:For equipment that has a first cost of $17,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 -1,300 4,500 -2,000 3,000 -3,000 2,000 Determine the economic service life ESL, at /= 10% per year using factors. The economic service life ESL, is years with the AW = $- SEN 3 4 5
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