aks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration er equipment with newer models in the entire center built 9 years ago. The original purchase price of the ea 00 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annua d equipment, if the company can now sell it for $180,000. The company's MARR is 25% per year. uivalent annual cost of the installed equipment is $-
aks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration er equipment with newer models in the entire center built 9 years ago. The original purchase price of the ea 00 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annua d equipment, if the company can now sell it for $180,000. The company's MARR is 25% per year. uivalent annual cost of the installed equipment is $-
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, HV
and other equipment with newer models in the entire center built 9 years ago. The original purchase price of the equipment was
$786,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the
installed equipment, if the company can now sell it for $180,000. The company's MARR is 25% per year.
The equivalent annual cost of the installed equipment is $-
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