Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and theestimated operating costs and year-end salvage values shown belowYearOperation Cost Salvage Value$ per Year$1-10002 -12003-13004 -21001 year2 years3 years4 years6000500030002000

The economic life is 2 years because the EUAC is minimum at 3688.37

Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the estimated operating costs and year-end salvage values shown below Year 1 2 3 Operation Cost Salvage Value $ per Year - 1000 -1200 -1300 -2100 6000 5000 3000 2000

Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the estimated operating costs and year-end salvage values shown below Year 1 2 3 Operation Cost Salvage Value $ per Year - 1000 -1200 -1300 -2100 6000 5000 3000 2000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the
estimated operating costs and year-end salvage values shown below
Year
Operation Cost Salvage Value
$ per Year
$
1
-1000
2 -1200
3
-1300
4 -2100
1 year
2 years
3 years
4 years
6000
5000
3000
2000

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