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(a) An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM 15,000 per year. It

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(a) An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM 15,000 per year. It will provide the needed service for a maximum of 6 years. If the salvage value changes as shown below, determine the economic life of the asset at 20% per year. Table Q3(a) Year Salvage Value, RM 0 0 10,000 8.000 AWN 5,000 5,000 3,000

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