Determine the esl by hand use a spreadsheet with a graph


A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage value that decreases to zero by $150,000 each year of the equipment’s maximum useful life of 5 years. Assume the company’s MARR is 10% per year. (a) Determine the ESL by hand. (b) Use a spreadsheet with a graph indicating the capital recovery, AOC, and total AW per year to determine the ESL. Aw is average worth AOC-annual opperating costs ESL-economic service life.

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Financial Management: Determine the esl by hand use a spreadsheet with a graph
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