Required information For equipment that has a first cost of $19,000, the estimated operating costs and year-end salvage values are as shown. Year |1 Operating Cost, $ Salvage Value, $ -1,000 7,000 -1,200 5,000 -1,300 4,500 14 -2,000 3,000 ||-3,000 2,000 Determine the economic service life ESL, at i= 10% per year using factors. The economic service life ESL, is years with the AW = $-

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Required information
For equipment that has a first cost of $19,000, the estimated operating costs and year-end salvage values
are as shown.
Year
|1
Operating Cost, $
Salvage Value, $
-1,000
7,000
-1,200
5,000
-1,300
4,500
14
-2,000
3,000
||-3,000
2,000
Determine the economic service life ESL, at i= 10% per year using factors.
The economic service life ESL, is
years with the AW = $-
Transcribed Image Text:Required information For equipment that has a first cost of $19,000, the estimated operating costs and year-end salvage values are as shown. Year |1 Operating Cost, $ Salvage Value, $ -1,000 7,000 -1,200 5,000 -1,300 4,500 14 -2,000 3,000 ||-3,000 2,000 Determine the economic service life ESL, at i= 10% per year using factors. The economic service life ESL, is years with the AW = $-
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