A construction equipment for Tech Builders Inc has a first cost of $25,000 and the following salvage values and annual operating costs:

t	s(t)	Op. Cost (t)
1	$ 22000	$ 10000
2	21500	10500
3	20000	11000
4	19500	11500
5	10000	12000
6	0	12500

Use a MARR of 10% and determine the EAC of keeping the equipment for all possible years and determine the optimal economic life of the equipment.

Hint: EAC at year 3 = 14,479.