An electric oil pump 's first cost is $45,000, and the interest rate is 10 The pump 's end of year salvage value s over the next 5 years are $42K, $40K, $38K, $32K, and $28K Determine the pump 's economic life Show all of your work ...

From the given information The pumps first cost is 45000 From the above calcu ...

An electric oil pump's first cost is $45,000, and the interest rate is 10%. The pump's end

Question:

An electric oil pump's first cost is $45,000, and the interest rate is 10%. The pump's end of year s over the next 5 years are $42K, $40K, $38K, $32K, and $28K. Determine the pump's economic life. Show all of your work.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...