A three-year-old small crane is being considered for early replacement. Its current market value is $13 000. Estimated future market values and annual operating costs for the next five years are given in the following table:
What is the economic life for this crane if the interest rate is 10% per year?

Question

A three-year-old small crane is being considered for early replacement. Its current market value is $13 000. Estimated future market values and annual operating costs for the next five years are given in the following table:
  What is the economic life for this crane if the interest rate is 10% per year?

Quizplus · Accepted Answer

The Answer of A three-year-old small crane is being considered for early replacement. Its current market value is $13 000. Estimated future market values and annual operating costs for the next five years are given in the following table:
  What is the economic life for this crane if the interest rate is 10% per year?

A Three-Year-Old Small Crane Is Being Considered for Early Replacement