Fundamentals of Engineering Economics 3rd Edition by Chan Park

تمرين 1

Newnan Furniture owns and operates an industrial lift truck in its warehousing operation. The record indicates that the lift truck was purchased four years ago at $12,000. The estimated salvage value is $3,000 after four years of operation. First-year O M expenses were $2,500, but the O M expenses have increased by $500 each year for the first four years of operation. Using i = 10%, compute the annual-equivalent costs of the lift truck for four years on a before-tax basis.