A challenger asset with a maximum useful life of 6 years has a first cost of $43,000 and an estimated annual operating cost of $6250. The market value is expected to decrease by
$6450 each year for the next 6 years. If the MARR is 10% per year, what is the economic service life of this asset?

Question

Quizplus · Accepted Answer

The Answer of A challenger asset with a maximum useful life of 6 years has a first cost of $43,000 and an estimated annual operating cost of $6250. The market value is expected to decrease by
$6450 each year for the next 6 years. If the MARR is 10% per year, what is the economic service life of this asset?

A Challenger Asset with a Maximum Useful Life of 6