The Economic Service Life of an asset is???

A. The longest time that asset will still perform the function that it was originally purchased for. B. The length of time that will yeild the lowest annual worth of costs. C. The length of time that will yeild the lowest present worth of costs. D. The time required for it's market value to reach the originally estimated salvage value. I think the answer is ''B'' but need confirmation. Thanks

MACRS method

A machine with a 10-year life is to be depreciated by the MACRS method. The machine has a first cost of $30,000 with a $5,000 salvage value. It's annual operating cost is $7,000 per year. The depreciation charge in year 3 is nearest to? A. $3600 B. $4320 C. $5860 D. $7,120

ANNUAL WORTH

Calculate the annual worth (years 1 through 10) of the following series of disbursements. Assume that i = 12% per year. Year Disbursement,$ Year Disbursement,$ 0 $5,000 6 $5,000 1 $3,500 7 $5,000 2 $3,500 8 $5,000 3 $3,500 9 $5,000 4 $5,000 10 $15,000 A. $-6817 B. $-5817 C. $-4817 D. $-7817

Engineering Economics

Please show me the steps involved to solve the attached problems. --- 4. Two electrical systems are being compared for a new industrial plant. The one system will have first cost of $200,000 and annual operating costs of $10,000. The second system will have first cost of $300,000 and annual operating costs of $5,000. Each system will be depreciated over a period of 10 years using straight line depreciation. The company is in a 35% tax bracket. Which system should be selected if they both help produce the same expected profits over the life of the investment? 5. Sample has a mean value of 84 and a standard deviation of 5.2. What is the probability of obtaining a value between ... click for more

Engineering Economics

Please show me the steps involved to solve the attached problems. --- 7. Identify the formula for the straight line that describes the relationship between the two variables X and Y from the data below. X 4 5 6 7 8 Y 21 24 25 28 8. You have the following historical costs for an item for the last five years. You believe there is a trend that will continue into the future and want to be able to predict the cost ten years from now. Use the least squares method to develop a projection of the unit cost ten years from now. Year 1993 1994 1995 1996 1997 Unit Cost $6.75 $7.04 $7.65 $7.99 $8.20 ... click for more