A large standby electricity generator in a hospital operating room has a first cost of $79,500 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=79,500(10.15), where n is the number of years after purchase. The operating cost of the generator will be constant at $8,500 per year, and the interest rate is 12% per year. Determine the economic service life and associated AW values. The economic service life is | years and the AW value is $-|

A large standby electricity generator in a hospital operating room has a first cost of $64,250 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 = 64,250(1 − 0.15)n, where n is the number of years after purchase. The operating cost of the generator will be constant at $6,000 per year, and the interest rate is 12% per year. Determine the economic service life and associated AW values.

If the property will be immediately be replaced at a market value of 15,000, what will its sunk cost?

An investment of $20.000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR Is 15% per year, the equation that can be used to solve for i is: 0 = -20,000 + 700O(P/A.I".3) + 8000(P/F,1".3) Select one: True False The PW method allows analysis over the respective alternative lives. Select one: •True O False In the B/C analysis equation, to calculate the cost (C). we use the minus sign ahead of costs. Select one: a. True b. False To satisfy equal-service requirement for PW comparisons, we use: Select one: O a. no need to compare alternatives for equal life service. O b. study period approach O C. LCM approach O d. either LCM or specified study period approach.