1. What is the minimum-cost life (aka ESL)? Answer A. The period of time at whic

Question

1. What is the minimum-cost life (aka ESL)?

Answer

A.

The period of time at which the salvage value is maximized

B.

The period of time at which the incoming receipts due to the asset is maximized

C.

The period of time at which the EUAC of ownership is minimized

D.

The period of time at which the marginal cost begins to decrease

2.A machine that is been used for one year currently has a salvage value of $10,000 dollars, which will drop $2000 per year. Maintenance costs for the next four years are $1250, $1,450, $1,750 and $2,250. What is the marginal cost to extend service for the second year if the Marr is 8%?

3.A pump's first cost is $45,000 at a Marr of 10%. The pump's end

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