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Calculate the economic life of the piece of equipment

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Reference no: EM132805381

Your accountant has provided you with the following table of salvage values for a certain type of apricot squeezing machine, which you are considering for use in your Sour Apricot Sherbet Shop.

Year      Salvage value
1            $22,000
2             $21,000
3           $20,000
4           $16,000
5             $10,000

Problem 1: Calculate the economic life (years) of this piece of equipment. The first cost is $25,000 and MARR is 12%.

Reference no: EM132805381

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