Question: A theft-avoidance locking system has a first cost of $28,000, an AOC of $7,000, and no salvage value after its 3-year life. Assume that you

A theft-avoidance locking system has a first cost of $28,000, an AOC of $7,000, and no salvage value after its 3-year life. Assume that you were told the service provided by this asset would be needed for only 5 years. This means that the asset will have to be repurchased and kept for only 2 years.

What would its market value, call itM, have to be after 2 years in order to make its annual worth the same as it is for its 3-year life cycle at an interest rate of 10% per year? Determine the market valueMusing factors.

The market valueMis $ ?.

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