Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 45

A construction company bought a 180,000 metric ton earth sifter at a cost of $65,000. The company expects to keep the equipment a maximum of 7 years. The operating cost is expected to follow the series described by 40,000 + 10,000 k , where k is the number of years since it was purchased ( k = 1, 2,... , 7). The salvage value is estimated to be $30,000 for years 1 and 2 and $20,000 for years 3 through 7. At an interest rate of 10% per year, determine the economic service life and the associated equivalent annual cost of the sifter.