14.7 The University Resume Service has just invested $8,000 in a new desktop pub- lishing system. From past experience, the owner of the company estimates its after-tax cash returns as An = $8,000 - $4,000(1 + 0.15) "-1, Sn = $6,000(1 - 0.3)", where A, stands for the net after-tax cash flows from operation of the system dur- ing period n and S stands for the after-tax salvage value at the end of period n. (a) If the company's MARR is 12%, compute the economic service life of the system.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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14.7 The University Resume Service has just invested $8,000 in a new desktop pub-
lishing system. From past experience, the owner of the company estimates its
after-tax cash returns as
An
=
$8,000 - $4,000(1 + 0.15) "-1,
Sn = $6,000(1 - 0.3)",
where A, stands for the net after-tax cash flows from operation of the system dur-
ing period n and S stands for the after-tax salvage value at the end of period n.
(a) If the company's MARR is 12%, compute the economic service life of the
system.
Transcribed Image Text:14.7 The University Resume Service has just invested $8,000 in a new desktop pub- lishing system. From past experience, the owner of the company estimates its after-tax cash returns as An = $8,000 - $4,000(1 + 0.15) "-1, Sn = $6,000(1 - 0.3)", where A, stands for the net after-tax cash flows from operation of the system dur- ing period n and S stands for the after-tax salvage value at the end of period n. (a) If the company's MARR is 12%, compute the economic service life of the system.
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