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A machine costs $17,026 and is expected to have a scrap value of $2,432 whenever it...

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Economics

A machine costs $17,026 and is expected to have a scrap value of$2,432 whenever it is retired. Operating and Maintenance costs are$1,268 for the first year and expected to increase by $1,784thereafter. If the MARR is 11%, determine the minimum equivalentuniform annual cost associated with the optimal economic life ofthe machine. The service life of this machine is 5 years.

Answer & Explanation Solved by verified expert
4.3 Ratings (634 Votes)
The economic service life is 5 year because cost is continuously increasing while salvage value is constant Associated EUAC is 868161 This is found by finding the present    See Answer
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