Discuss about the economic life of the equipment

Reference no: EM132173444

Question: Equipment is bought for $20,000; its annual operational costs for the first three years are $3,000, $6,000, and $9,000, respectively, and they will increase by $6,000 every year from then on. The resale value of this equipment at any year equals its removal cost. The MARR for the owner of this equipment is 15%. What is the economic life of this equipment? Ignore income tax and depreciation.

Reference no: EM132173444

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