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J.Doe must choose bet open two different models. The study period considered is 6 years. Model 1 has a life of four years with a
J.Doe must choose bet open two different models. The study period considered is 6 years. Model 1 has a life of four years with a first cost of $13,500 and maintenance costs of $1,250 per year in years 2, 3, and 4 (no maintenance costs in year 1). The Salvage value for this model can be estimated using the declining - balance depreciation method (d =264) Model 2 has a life of three years with a first cost of $15.000 and maintenance costs of $ 700 per year. Its salua qe valve can be estimated using the straight - live depreciation method knowing that the salvage value after one year is $13,100 Consider a MARR of 12%. What is the annual worth of the costs for model 2 for the study period? a) $2,749 b) - $3,305 c) - $3922 asst canned with as $40!89 Scanner
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