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An electric oil pump's first cost is RM45,000, and the interest rate is 10%. The pump's end-of-year salvage values over the next 5 years are
An electric oil pump's first cost is RM45,000, and the interest rate is 10%. The pump's end-of-year salvage values over the next 5 years are given in the table below:
End of Year | Salvage Value (RM) |
---|---|
0 | 45,000 |
1 | 42,000 |
2 | 40,000 |
3 | 38,000 |
4 | 32,000 |
5 | 26,000 |
a) What is the capital recovery cost at the end of year 3?
b) What is the total marginal cost at the end of year 5? c) What is the EUAC at the end of year 4?
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