Q1. What is the Economic Service Lifetime, ESL of this plot below? AW equivalent of cash flow 1.2 1 0.8 0.6 0.4 0.2 0 1 2 3 4 5 6 7 8 9 year of operation
Q1. What is the Economic Service Lifetime, ESL of this plot below? AW equivalent of cash flow 1.2 1 0.8 0.6 0.4 0.2 0 1 2 3 4 5 6 7 8 9 year of operation
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Q1. What is the Economic Service Lifetime, ESL of this plot below?
AW equivalent of cash flow
1.2
1
0.8
0.6
0.4
0.2
0
1 2 3 4 5 6 7 8 9
year of operation
Q2. Find the economic service lifetime of the following machine? Try to use Excel if possible and show
me the screen shot of the calculations. MARR is 12%. I encourage you to plot it too if possible but no
pressure.
Year Market value, $ O&M, $
0
12000
1
8000
2
5600
3
3920
4
2744
5
1921
6
1345
7
941
8
659
2300
2760
3312
3974
4769
5723
6868
8241
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