Question: Defender: o Current trade-in (re-sale) value = $7,000, decreasing at an annual rate of 30% from the previous year's value . O&M - $2,200 in

 Defender: o Current trade-in (re-sale) value = $7,000, decreasing at an

Defender: o Current trade-in (re-sale) value = $7,000, decreasing at an annual rate of 30% from the previous year's value . O&M - $2,200 in year 1, increasing by 40% per year o Immediate overhaul required (if kept) - $500 . Maximum possible lifespan is 5 additional years of service (from now) Find the AEC at the ESL? Assume MARR = 12%

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