Question

11.13 When determining the economic service life of anew piece of equipment, an engineer made the calculations below; however, the annual worth of the salvage value for 2 years of

retention was omitted.Complete the analysis by determining the following to make the ESL equal 2 years: (a) minimum AW of the salvage value; (b) estimated salvage value that would produce the AW calculated in part (a) at i = 10% per year. (Note: Values in the table are AW values, not individual year-end values.)

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