3- An equipment has a first cost of $10,000. Estimated operating costs and year-end salvage values...

 

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3- An equipment has a first cost of $10,000. Estimated operating costs and year-end salvage values are shown below, determine the economic service life at i-10% based on AW evaluation. What is Optimum Life of the equipment and the corresponding minimum cost per year? (Note: AW(n=1)=-5000; AW2(n-2)=-4476 AWs(n=5)=-3921) End of Year Operating Cost, $/Year Salvage Value, $ 1 1000 7000 2 1200 5000 3 1300 4500 4 2000 3000 5 3000 2000 3- An equipment has a first cost of $10,000. Estimated operating costs and year-end salvage values are shown below, determine the economic service life at i-10% based on AW evaluation. What is Optimum Life of the equipment and the corresponding minimum cost per year? (Note: AW(n=1)=-5000; AW2(n-2)=-4476 AWs(n=5)=-3921) End of Year Operating Cost, $/Year Salvage Value, $ 1 1000 7000 2 1200 5000 3 1300 4500 4 2000 3000 5 3000 2000