Question: 10.18 A pump costing $18000 is expected to have operating disbursements of $6500 the first year. The machine's resale value is expected to decline by

10.18 A pump costing $18000 is expected to have operating disbursements

10.18 A pump costing $18000 is expected to have operating disbursements of $6500 the first year. The machine's resale value is expected to decline by 15% a year, while its operating expenses are expected to increase by $500 a year. If the MARR is 20%, determine the economic life and the corresponding annual equivalent cost. Ans. 8 years, EUAC(8)-$12 181.50

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