For equipment that has a first cost of $17,500, 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 Determine the economic service life ESL, at i = 10% per year using factors. The economic service life ESL, is ___ years with the AW = $___−
For equipment that has a first cost of $17,500, 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 Determine the economic service life ESL, at i = 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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For equipment that has a first cost of $17,500, 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 |
Determine the economic service life ESL, at i = 10% per year using factors.
The economic service life ESL, is ___ years with the AW = $___−
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