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Determine the AW of costs and the ESL for a machine that has a first cost of $10440 at an interest rate of 8.2% given
Determine the AW of costs and the ESL for a machine that has a first cost of $10440 at an interest rate of 8.2% given the operating costs and year-end salvage values shown below.
| Year | AOC, $ | Salvage, $ | AW of Costs |
|---|---|---|---|
| 1 | -970 | 7726 | |
| 2 | -1329 | 5717 | |
| 3 | -1847 | 3773 | |
| 4 | -2475 | 2490 | |
| 5 | -3440 | 1643 |
ESL = years
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Financial Derivative Investments An Introduction To Structured Products
Authors: Richard D. Bateson
1st Edition
1848167113, 9781848167117
