An old asset-a piece of equipment-has a current market value of $10 000. Its purchase price 5 years ago was $15 000. Installation costs were $2 000 in year 1 with some adjustment costs in year 2. If you are to calculate the EAC (Capital)to keep this asset in operation, what value should be assigned to P in the formula EAC(Capital)= (P - S)*(A/P, i, N)+ iS?

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The Answer of An old asset-a piece of equipment-has a current market value of $10 000. Its purchase price 5 years ago was $15 000. Installation costs were $2 000 in year 1 with some adjustment costs in year 2. If you are to calculate the EAC (Capital)to keep this asset in operation, what value should be assigned to P in the formula EAC(Capital)= (P - S)*(A/P, i, N)+ iS?

An Old Asset-A Piece of Equipment-Has a Current Market Value