4 2. A piece of equipment used in a manufacturing plant that costs 220,000 to...
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4 2. A piece of equipment used in a manufacturing plant that costs 220,000 to purchase has the economic data shown in the table below including the market value if the equipment was sold at the end of the period of use. Apply an interest rate of 9.0% to answer the questions that follow the data. Period 1 2 3 5 Operating Cost 45,000 56,000 70,000 85,000 98,000 Salvage Value 160,000 125,000 105,000 45,000 15,000 a. What is the lowest period equivalent cost for keeping the equipment in operation for the economic service life? b. What is the economic service life? 4 2. A piece of equipment used in a manufacturing plant that costs 220,000 to purchase has the economic data shown in the table below including the market value if the equipment was sold at the end of the period of use. Apply an interest rate of 9.0% to answer the questions that follow the data. Period 1 2 3 5 Operating Cost 45,000 56,000 70,000 85,000 98,000 Salvage Value 160,000 125,000 105,000 45,000 15,000 a. What is the lowest period equivalent cost for keeping the equipment in operation for the economic service life? b. What is the economic service life
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