For equipment that has a first cost of $13,000, 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 -2,000 3,000 5 -3,000 2,000 Determine the economic service life ESL, at /= 10% per year using factors. The economic service life ESL, is years with the AW = $-|
For equipment that has a first cost of $13,000, 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 -2,000 3,000 5 -3,000 2,000 Determine the economic service life ESL, at /= 10% per year using factors. The economic service life ESL, is years with the AW = $-|
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:For equipment that has a first cost of $13,000, 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
Determine the economic service life ESL, at /= 10% per year using factors.
The economic service life ESL, is [
years with the AW = $-|
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