Determine the pump economic life

Reference no: EM132170595

Question: Compute the after-tax rate of return on the replacement proposal for Problem.

Problem: An electric oil pump's first cost is $45,000, and the interest rate is 10%. The pump's end-of-year salvage values over the next 5 years are $42K, $40K, $38K, $32K, and $26K. Determine the pump's economic life.

Reference no: EM132170595

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