Question: Refer to Example. By how much would the MARR have to change before the economic life decreases by one year? How about to increase the economic life by one year?
Example: Economic Life of a Challenger (New Asset) A new forklift truck will require an investment of $30,000 and is expected to have year-end MVs and annual expenses as shown in columns 2 and 5, respectively, of Table. If the before-tax MARR is 10% per year, how long should the asset be retained in service? Solve by hand and by spreadsheet.
