A piece of construction equipment cost $11200 fully installed. The annual maintenance costs and market values for each year k are listed in the table below. The firm uses an MARR of 8%. Use this information to answer the questions listed below. EOY(k) 1 2 3 4 AE 950 1900 2850 3800 MV(k) 6700 4700 3200 2200 1700 Please calculate your answer to the nearest whole dollar. Format 0000 No commas If the textbook does not have a discount factor table for the MARR, use Excel to calculate the result. Discount factors are 4 decimal places. Format 0.0000 a) What is the useful life, N, of the equipment? years b) What is the best economic life of the equipment? years c) What is the EUAC that corresponds to your answer in part b? $

A piece of construction equipment cost $11200 fully installed. The annual maintenance costs and market values for each year k are listed in the table below. The firm uses an MARR of 8%. Use this information to answer the questions listed below. EOY(k) 1 2 3 4 AE 950 1900 2850 3800 MV(k) 6700 4700 3200 2200 1700 Please calculate your answer to the nearest whole dollar. Format 0000 No commas If the textbook does not have a discount factor table for the MARR, use Excel to calculate the result. Discount factors are 4 decimal places. Format 0.0000 a) What is the useful life, N, of the equipment? years b) What is the best economic life of the equipment? years c) What is the EUAC that corresponds to your answer in part b? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

A piece of construction equipment cost $11200 fully installed. The annual maintenance costs and
market values for each year k are listed in the table below. The firm uses an MARR of 8%. Use this
information to answer the questions listed below.
ΕΟY(k)
1
2
3
4
AE
950
1900
2850
3800
MV(k)
6700
4700
3200
2200
1700
Please calculate your answer to the nearest whole dollar. Format 0000 No commas
If the textbook does not have a discount factor table for the MARR, use Excel to calculate the result.
Discount factors are 4 decimal places. Format 0.0000
a) What is the useful life, N, of the equipment?
years
b) What is the best economic life of the equipment? years
c) What is the EUAC that corresponds to your answer in part b? $

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