A firm purchased an equipment for ! 50,000. The salvage value is expected to decrease at the

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A firm purchased an equipment for ! 50,000. The salvage value is expected to decrease at the rate of ! 4000 per year, starting from the end of the first year. The yearly operating and maintenance cost is ! 5000 during the first year of its operation and it increases by ! 1500 every year thereafter. At i = 12%, find the economical life of the equipment.

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