A piece of equipment has a first cost of $150,000, a maximum useful life of 7 years, and a market (sal­vage) value described by the relation S = 120,000 – 20,000k, where k is the number of years since it was purchased. The salvage value cannot go below zero. The AOC series is estimated using AOC = 60,000 + 10,000k. The interest rate is 15% per year. Deter­mine the economic service life (a) by hand solution, using regular AW computations, and (b) by spread­sheet, using annual marginal cost estimates.

What will be an ideal response?




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For the Real Estate Office in Appendix E, you have received a bid from an acoustical ceiling specialty contractor for $7,000. On a recent project for a 4,200-square-foot, wood-framed office building, the acoustical ceiling contractor’s bid was $9,600. Is the specialty contractor’s bid on the Real Estate Office too high, within an expected range, or too low?

What will be an ideal response?

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Sensors and nonlinear devices are accurate only within a specified range.

Answer the following statement true (T) or false (F)

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____________________ oil is produced from fat and is used in cosmetic and pharmaceutical products

Fill in the blank(s) with the appropriate word(s).

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What are the three components that have to operate when a residential air conditioning system is in the cooling mode?

What will be an ideal response?

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