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"A new asset is available for $236,000. O&M costs are $10,000 each year for the first...

"A new asset is available for $236,000. O&M costs are $10,000 each year for the first five years, $13,300 in year six, $19,300 in year seven, and $28,800 in year eight. Salvage values are estimated to be $144,000 after one year and will decrease at the rate of 49% per year thereafter. At a MARR of 10%, determine the economic service life of the asset. Enter your answer as an integer from 1 to 8."

Answer is 8

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ekkarill92 answered 2 years ago
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