An injection molding system has a first cost of $210,000 and an annual operating cost of $89,000 in years 1 and 2, increasing by $4,500 per year thereafter

Accounting Sep 25, 2020

An injection molding system has a first cost of $210,000 and an annual operating cost of $89,000 in years 1 and 2, increasing by $4,500 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 10% per year, determine the ESL and the respective AW value of the system.

The ESL is ? year(s) and AW value of the system is $ .?

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