A company is considering the purchase of new equipment for its
production area. The equipment has an initial cost of $ 3,000 with
operation and maintenance costs, as well as the market liquidation
value as shown in the following table:
Year
Costs of operation
Rescue value
1
$1,000
$1,500
2
$1,700
$1,000
3
$2,400
$500
4
$3,100
$0
Determine the Optimal Economic Life of this investment, if the
MARR of the company is 12%