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(17 pts) A new asset is available for $350,000. O&M costs are $35,000 each year...

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Accounting

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(17 pts) A new asset is available for $350,000. O&M costs are $35,000 each year for the first five years, $37,000 in year six, $43,000 in year seven, and $49,000 in year eight. Salvage values are estimated to be $140,000 after one year and will decrease at the rate of 30% per year thereafter. At a MARR of 10%, prepare a table including all the input data (3 pts) and calculate the annual equivalent costs (AECs) for all eight possible holding periods (12 pts) and determine the economic service life of the asset (2 pts). (If you use Excel, include a clear image of your solution in the answer. Show your calculations explicitly and justify your answers.) year(s) with an AEC value of $ (Round to the The economic service life of the asset is nearest whole number.)

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