In the analysis of replacement for an industrial chainsaw, the following data are known about the Challenger. The initial investment is $18,000. Annual maintenance costs start at year three, then cost $1,000, initially $1,000 at the end of the fourth year, increasing by $8,600 each year thereafter. The recovery value is always $0.
What is the annual economic life of the Challenger using a 6% MARR ?

Answer rating: 100% (QA)

To find the annual economic life of the Challenger chainsaw using a 6 Minimum Attractive Rate of Ret... View the full answer