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5. Year SV O&M 1 15,000 1000 2. 12,000 1500 3 9,000 2000 The table above lists salve value (SV) and operating and maintenance (O&M)

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5. Year SV O&M 1 15,000 1000 2. 12,000 1500 3 9,000 2000 The table above lists salve value (SV) and operating and maintenance (O&M) cost of an asset through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements is correct (choose the closest answer)? a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $6,500 b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is $7,048 c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $7,048 d) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is $6,000

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