An asset was purchased for $$52,000$ with the anticipation that it would serve for $12$ years

and be worth $$6000$ as scrap. After $5$ years of operation, the asset was sold for $$18,000.$ The

interest rate is $14\%.$

a$.$ What was the anticipated annual equivalent cost of the asset?

b$.$ What was the actual annual equivalent cost of the asset?

A microcomputer$-$based controller can be installed for $$30,000$ and will have a $$3,000$

salvage value after $10$ years and is expected to decrease energy consumption cost by

$$4,000$ per year.

a$.$ What rate of return is expected if the controller is used for $10$ years?

b$.$ For what life will the controller give a return of $15\%?$