5) An asset costs $10,000 and has salvage values and operating costs as shown below. Draw the cashflow diagram for each scenario. If i=8%, when should the asset be replaced with an identical asset? Will you compare P, A, or F? why? Show all work. End of yr Salvage Value Operating Cost in Specified Year 1 $6,000 $2,300 2 $4,000 $2,500 3 $3,200 $3,300 4567 $2,500 $4,800 $2,000 $6,800 $1,800 $9,500 $1,700 $12,000

Elements Of Electromagnetics
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ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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Solve, use engineering economic tables

5) An asset costs $10,000 and has salvage values and operating costs as shown below. Draw the cashflow
diagram for each scenario. If i=8%, when should the asset be replaced with an identical asset? Will you
compare P, A, or F? why? Show all work.
End of yr
Salvage Value
Operating Cost in Specified Year
1
$6,000
$2,300
2
$4,000
$2,500
3
$3,200
$3,300
4567
$2,500
$4,800
$2,000
$6,800
$1,800
$9,500
$1,700
$12,000
Transcribed Image Text:5) An asset costs $10,000 and has salvage values and operating costs as shown below. Draw the cashflow diagram for each scenario. If i=8%, when should the asset be replaced with an identical asset? Will you compare P, A, or F? why? Show all work. End of yr Salvage Value Operating Cost in Specified Year 1 $6,000 $2,300 2 $4,000 $2,500 3 $3,200 $3,300 4567 $2,500 $4,800 $2,000 $6,800 $1,800 $9,500 $1,700 $12,000
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