Order the answer to: A large, standby electricity generator in a hospital operating r

Order the answer to: A large, standby electricity generator…

Question	A large, standby electricity generator in a hospital operating room has a first cost of $70,000 and may be used for a maximum of 6 years. Its , which decreases by 15% per year, is described by the equation S = 70,000(1 – 0.15) n, where n is the number of years after purchase. The operating cost of the generator will be constant at $75,000 per year. At an interest rate of 12% per year, what are the economic service life and the associated AW value?
Subject	business-economics

Question

A large, standby electricity generator in a hospital operating room has a first cost of $70,000 and may be used for a maximum of 6 years. Its , which decreases by 15% per year, is described by the equation S = 70,000(1 – 0.15) n, where n is the number of years after purchase. The operating cost of the generator will be constant at $75,000 per year. At an interest rate of 12% per year, what are the economic service life and the associated AW value?

Subject

business-economics

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