When determining the economic service life of a new piece of equipment, an engineer made the calculations below; however, the annual worth of the salvage value for 2 years of retention was omitted. Complete the analysis by determining the following to make the ESL equal 2 years:

(a) Minimum AW of the salvage value;

(b) Estimated salvage value that would produce the AW calculated in part (a) at i = 10% per year. Values in the table are AW values, not individual year-end values.

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AW of First Cost, $ AW of Operating Cost, $ AW of Salvage Value, $ Years Retained -45,000 1 -88,000 50,000 -46,000 2 -46,095 3 -32,169 -51,000 6,042 -59,000 -25,238 3,232 1,638 5 -21,104 -70,000