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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 $9,000 $400 $800
2 6,000 800 1,600
3 4,000 1,200 2,400
4 2,500 1,600 2,600
5 1,500 2,000 3,500

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