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A special purpose NASA fuel cell requires an investment of $80,000 and has no MV at any time. Operating expenses in year k are given
A special purpose NASA fuel cell requires an investment of $80,000 and has no MV at any time. Operating expenses in year k are given by Ck= $10,000 + $6,000 (k1). Obsolescence is reflected in Increased operating expenses and is equivalent to $4,000 per yearthis expense has not been included in the equation forCk(9.5).
Determine the economic life of the fuel cell if i = 0%.
Repeat Part (a) when the $4,000 per year is ignored.
What can you conclude about the influence of an expense that is constant over time on the economic life?.
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