For equipment that has a first cost of $11,500, the estimated operating costs and year-end salvage values are as shown.Year12345Operating Cost, $Salvage Value, $-1,0007,000-1,2005,000-1,3004,500-2,0003,000-3,0002,000etermine the economic service life ESL, at /= 10% per year using factors.he economic service life ESL, isyears with the AW= $-|

The initial cost P=11500. The salvage value and annual cost change each year. The table below shows…

For equipment that has a first cost of $11,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 etermine the economic service life ESL, at /= 10% per year using factors. he economic service life ESL, is years with the AW = $-

For equipment that has a first cost of $11,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 etermine the economic service life ESL, at /= 10% per year using factors. he economic service life ESL, is years with the AW = $-

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For equipment that has a first cost of $11,500, the estimated operating costs and year-end salvage values are as shown.
Year
1
2345
Operating Cost, $
Salvage Value, $
-1,000
7,000
-1,200
5,000
-1,300
4,500
-2,000
3,000
-3,000
2,000
etermine the economic service life ESL, at /= 10% per year using factors.
he economic service life ESL, is
years with the AW= $-|

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