The minimum salvage value as a percentage of first cost.
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Answer to Problem 76P
Therefore the correction option is
Explanation of Solution
Given data:
Cost of the tank is
Salvage value is
Time period is
Annual repair cost for every 2 year is
Cost of the new tank is
Interest rate is
Number of years is
Concept used:
Write the expression to calculate the salvage value of the technology.
Here, salvage value is
Calculation:
Calculate the salvage value for the technology,
Substitute,
Write the expression to calculate percentage to the first cost.
Substitute,
Conclusion:
The nearest value to the answer is
Therefore, the correction option is
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Chapter D Solutions
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