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The cost data like the equivalent uniform annual cost of capital recovery (EUAC of CR), EUAC of Maintenance and EUAC of Operating Cost for equipment

The cost data like the equivalent uniform annual cost of capital recovery (EUAC of CR), EUAC of Maintenance and EUAC of Operating Cost for equipment being considered at a local company are given in the table below. What is the economic life?

A. 4 years B. 2 year C. 3 years D. 5years

Year EUAC of CR EUAC of Maintenance EUAC of Operating Cost
1 9000 400 800
2 6000 800 1600
3 4000 1200 2400
4 2500 1600 2600
5 1500 2000 3500

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