A) 2 Years

B) 3 Years

C) 4 Years

D) 5 Years

Determine the economic service life at i = 10% per year for a machine that has a first cost of $10,000 and estimated operating costs and year-end salvage values as shown. Annual Worth of End of Year Salvage Value, S 7,000 5,000 4,200 3,000 2,000 Period 1 year 2 years 3 years 4 years 5 years Operating Cost, S/year -1,000 1,500 -2,000 2,500 -3,000 4