A remotely situated fuel cell has an installed cost of $2,000 and will reduce existing surveillance expenses
Question:
a. What is the minimum salvage (market) value after eight years that makes the fuel cell worth purchasing?
b. What is the fuel cell's IRR if the salvage value is negligible?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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a Set AW8 0 and solve for S the sa...View the full answer
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Related Book For 
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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