A large heat treating oven for powder-coating automobile frames was purchased for $50.000. The estimated operating costs. maintenance costs, and salvage values are shown below.
Determine the AW (annual worth) that corresponds to the economic service life of the equipment, using a rate of 8%.
|
Year
|
Operating Cost. $
|
Maintenance cost, $
|
Salvage Value.
|
|
1
|
-15.000
|
-3.000
|
35.000
|
|
2
|
-17.000
|
-3.000
|
30.000
|
|
3
|
-19.000
|
-5.000
|
25.000
|
|
4
|
-21.000
|
-5.000
|
20.000
|
|
5
|
-23.000
|
-6.500
|
15.000
|