4. A piece of equipment costs $50,000 to buy. Insurance costs $1000 a year. The maintenance costs and salvage values are listed below. Which year should you turn in this equipment? Year 1: Maintenance S5,000, salvage value $40,000 Year 2: Maintenance S6,500, salvage value S35,000 Year 3: Maintenance $8,000, salvage value S30,000 Year 4: Maintenance $9,500, salvage value S25,000 Year 5: Maintenance $11,000, salvage value $20,000

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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4. A piece of equipment costs $50,000 to buy. Insurance costs $1000 a year. The maintenance costs and
salvage values are listed below. Which year should you turn in this equipment?
Year 1: Maintenance $5,000, salvage value $40,000
Year 2: Maintenance $6,500, salvage value $35,000
Year 3: Maintenance $8,000, salvage value $30,000
Year 4: Maintenance $9,500, salvage value $25,000
Year 5: Maintenance $11,000, salvage value $20,000
Transcribed Image Text:4. A piece of equipment costs $50,000 to buy. Insurance costs $1000 a year. The maintenance costs and salvage values are listed below. Which year should you turn in this equipment? Year 1: Maintenance $5,000, salvage value $40,000 Year 2: Maintenance $6,500, salvage value $35,000 Year 3: Maintenance $8,000, salvage value $30,000 Year 4: Maintenance $9,500, salvage value $25,000 Year 5: Maintenance $11,000, salvage value $20,000
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