*************** Answer this question clearly showing steps please. The initial cost of a piece of equipment...

***************

Answer this question clearly showing steps please.

The initial cost of a piece of equipment is 80 000 dollars.

The value of this equipment by the market has been declining at a rate of 15 000 dollars annually.

The O and M costs in the first year were 10 000 dollars and have been increasing by 2 000 dollars from the second year.

Determine the minimum cost life of this equipment if MARR is 10%

Answers:

4 years, 2 years, 1 years or 5 years?

It could be one of the following choices above.

Thanks.... Show steps

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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