4. A small dozer is purchased for $110,000. A forecast of expected operating hours, salvage values, and maintenance expense is presented in the table: Year 1 2 3 4 Operating hours Salvage Maintenance expense 82000 78000 75000 70000 2000 1700 1500 1400 2250 2200 2100 2050 When the equipment should be changed based on the economic life cost analysis?

ENGR.ECONOMIC ANALYSIS
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4. A small dozer is purchased for $110,000. A forecast of expected operating hours,
salvage values, and maintenance expense is presented in the table
Year Operating hours Salvage Maintenance expense
1
2000
82000
2250
2
1700
78000
2200
3
1500
75000
2100
4
1400
70000
2050
When the equipment should be changed based on the economic life cost analysis?
Transcribed Image Text:4. A small dozer is purchased for $110,000. A forecast of expected operating hours, salvage values, and maintenance expense is presented in the table Year Operating hours Salvage Maintenance expense 1 2000 82000 2250 2 1700 78000 2200 3 1500 75000 2100 4 1400 70000 2050 When the equipment should be changed based on the economic life cost analysis?
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