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jasenka [17]
3 years ago
8

An equipment cost $80,000 initially. The market value has been declining at the rate of $15,000 yearly. The O & M costs in y

ear 1 were $10,000 and have been increasing by $2,000 from year 2.
Determine the economic life of this equipment for a MARR of 10 %.
(A) 2 years
(B) 1 Year
(C) 4 Years
(D) 5 Years
Business
1 answer:
Oksi-84 [34.3K]3 years ago
8 0

Answer:

D.5 years

Explanation:

Annual Depreciation = Cost/Useful life

$15,000=$80,000/Useful life

Useful Life=$80,000/$15,000

Useful Life=5.33

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