Question: SS Anderson County has 35 older-model school buses that will be salvaged for $5000 each These buses cost $144,000 per year for fuel and maintenance.
SS Anderson County has 35 older-model school buses that will be salvaged for $5000 each These buses cost $144,000 per year for fuel and maintenance. Now the county will purchase 35 new school buses for $40,000 each. These new buses will save $10,000 per year in fuel (compared with the older buses) for the entire group of 35 buses. The new buses will have a market value of $7000/bus after fifteen years and the county's MARR IS 6% per year. Use the AW Method to find the equivalent annual uniform value for this business venture
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