A piece of equipment has a first cost of 135000 a maximum, Ask an Expert

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A piece of equipment has a first cost of $135,000, a maximum useful life of 7 years, and a market (salvage) value described by the relation S = 120,000 - 21,000k, where k is the number of years since it was purchased. The salvage value cannot go below zero. The AOC series is estimated using AOC = 60,000 + 11,000 k. The interest rate is 12% per year. Determine the economic service life and the respective AW.

The economic service life is year(s) and the AW value is $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92413270

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