White Oaks Properties builds strip shopping centersand
Chapter 6, Problem 6.8(choose chapter or problem)
White Oaks Properties builds strip shopping centersand small malls. The company plans to replaceits refrigeration, cooking, and HVAC equipmentwith newer models in one entire center built9 years ago. The original purchase price of theequipment was $638,000 nine years ago and theoperating cost has averaged $240,000 per year.Determine the equivalent annual cost of the equipmentif the company can now sell it for $184,000.The companys MARR is 25% per year.
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