# An electric oil pumps first cost is $45,000, and the interest rate is 10%. The pumps end-of-year..

An electric oil pumps first cost is $45,000, and the interest rate is 10%. The pumps end-of-year salvage values over the next 5 years are: Year 1 2 3 4 5 S $42K

An electric oil pumps first cost is $45,000, and the interest rate is 10%. The pumps end-of-year salvage values over the next 5 years are: Year 1 2 3 4 5 S $42K 40K 38K 32K 26K Determine the pumps economic life. (a) Use the tabulated factors. (b) Use a spread sheet like Exbibit 10.3. (Answer: 3 years)