A large standby electricity generator in a hospital operating room has a first cost of $73,000 and may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is described by the equation S= 73,000(1 - 0.15)", where n is the number of years after purchase. The operating cost of the generator will be constant at $6,250 per year, and the interest rate is 12% per year. Determine the economic service life and associated AW values. The economic service life is 6 years and the AW value is $-

A large standby electricity generator in a hospital operating room has a first cost of $73,000 and may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is described by the equation S= 73,000(1 - 0.15)", where n is the number of years after purchase. The operating cost of the generator will be constant at $6,250 per year, and the interest rate is 12% per year. Determine the economic service life and associated AW values. The economic service life is 6 years and the AW value is $-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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