Question 13.6: An asset purchased 5 years ago for $75,000 can be sold today...

Engineering Economic Analysis

An asset purchased 5 years ago for $75,000 can be sold today for $15,000. Operating expenses will be $10,000 this year, but these will increase by $1500 per year. It is estimated that the asset’s salvage value will decrease by $1000 per year over the next 5 years. If the MARR used by the company is 15%, calculate the total marginal cost of ownership of this old asset (that is, the currently implemented asset) for each of the next 5 years.

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