An equipment cost $80,000 initially. The market value has been declining at the rate of $15,000 yearly. The O & M costs in year 1 were $10,000 and have been increasing by $2,000 from year 2.
Determine the economic life of this equipment for a MARR of 10 %.
(A) 2 years
(B) 1 Year
(C) 4 Years
(D) 5 Years