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2) A piece of construction equipment, currently being considered for purchase, has an initial cost of $28,000, and expected 12 year service life, and a
2) A piece of construction equipment, currently being considered for purchase, has an initial cost of $28,000, and expected 12 year service life, and a salvage value of $4,000 at the end of the 12 years. According to your company's procedures, the maximum planning horizon for considering assets is 6 years. Using the approach of salvaging the future value, that has been discussed in class, determine the unused value of the asset at the end of 6 years. Assume i = 7% (10 points) 2) A piece of construction equipment, currently being considered for purchase, has an initial cost of $28,000, and expected 12 year service life, and a salvage value of $4,000 at the end of the 12 years. According to your company's procedures, the maximum planning horizon for considering assets is 6 years. Using the approach of salvaging the future value, that has been discussed in class, determine the unused value of the asset at the end of 6 years. Assume i = 7% (10 points)
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