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0.2 A manufacturing process asset is being considered for early replacement. Its current market value is $13,000. Estimated future market values and annual operating costs

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0.2 A manufacturing process asset is being considered for early replacement. Its current market value is $13,000. Estimated future market values and annual operating costs for the next 4 years is given in table below. What is the economic service life if the interest rate is 10% per year? [CLO 04] [10 marks] Year MV AOC J Capital Recovery AW of AOC Total AWK 1 $ 9000 $-2500 2 8000 -2700 3 6000 -3000 4 2000 -3500

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