A special purpose NASA fuel cell requires an investment of $60,000 and has no MV at any time. Operating expenses in year k are given by Ck = $10,000 + $6,000(k-1). Obsolescence is reflected in increased operating expenses and is equivalent to $4,500 per year - this expense has not been included in the equation for C a. Determine the economic life of the fuel cell if i = 0%. b. Repeat Part (a) when the $4,500 per year is ignored. What can you conclude about the influence of an expense that is constant over time on the economic life? a. The economic life of the fuel cell if i = 0% is years. (Round to the nearest whole year.) b. When the $4,500 per year is ignored the economic life of the fuel cell is years. (Round to the nearest whole year.) What can you conclude about the influence of an expense that is constant over time on the economic life? Choose the correct answer below. O A. The constant costs over the time do not influence the economic life value in this particular question only because of this particular set of values. OB. The constant costs over the time can be ignored in calculating economic life because average costs calculated with and without them for the same period differ only by the amount of these constant costs. O C. The constant costs over the time can not be ignored in calculating economic life because average costs calculated with and without them for the same period are different. OD. The constant costs over the time do not influence the economic life value only if it is shorter than 10 years A special purpose NASA fuel cell requires an investment of $60,000 and has no MV at any time. Operating expenses in year k are given by Ck = $10,000 + $6,000(k-1). Obsolescence is reflected in increased operating expenses and is equivalent to $4,500 per year - this expense has not been included in the equation for C a. Determine the economic life of the fuel cell if i = 0%. b. Repeat Part (a) when the $4,500 per year is ignored. What can you conclude about the influence of an expense that is constant over time on the economic life? a. The economic life of the fuel cell if i = 0% is years. (Round to the nearest whole year.) b. When the $4,500 per year is ignored the economic life of the fuel cell is years. (Round to the nearest whole year.) What can you conclude about the influence of an expense that is constant over time on the economic life? Choose the correct answer below. O A. The constant costs over the time do not influence the economic life value in this particular question only because of this particular set of values. OB. The constant costs over the time can be ignored in calculating economic life because average costs calculated with and without them for the same period differ only by the amount of these constant costs. O C. The constant costs over the time can not be ignored in calculating economic life because average costs calculated with and without them for the same period are different. OD. The constant costs over the time do not influence the economic life value only if it is shorter than 10 years
