The first cost of a challenger is US 395000 and its salvag.pdf

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The first cost of a challenger is US$ 395,000 and its salvage value is US$ 150,000 whatever its life is. The maintenance costs are US$ 20,000 for the first year and the next payments will be with annual arithmetic increases of US$ 2,000 along its physical life of 6 years. MARR is 10% per year. Calculate the economic life of this challenger..

The first cost of a challenger is US$ 395,000 and its salvage value is US$ 150,000 whatever its life
is. The maintenance costs are US$ 20,000 for the first year and the next payments will be with
annual arithmetic increases of US$ 2,000 along its physical life of 6 years. MARR is 10% per year.
Calculate the economic life of this challenger.

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