Question

in a replacement analysis, the following is known about the challenger: the initial investment is $8000, there is no annual maintenance for the first three years, maintenance each year in years four and five is $2000, then $4500 in year six, and invreasinh by $2500 each year thereafter. the salvage value is $0 at all times and the MARR is 12% per year. the economic life of the challeneger is how many years?​

Answer 1

Explanation:

year 1 EUAC = 8,000(A|P, 12%, 1) = 8,000*1.12=8960 year 2 EUAC =8,000(A|P, 12%, 2) = 8,000* 0.5918=4734.4 year 3 EUAC= 8,000(A|P, 12%,3) = 8,000