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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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