A machine tool, which has been used in a plant for 10 years, is being considered for

Question:

A machine tool, which has been used in a plant for 10 years, is being considered for replacement. It cost $9500 and was depreciated by MACRS depreciation using a 5-year recovery period. An equipment indicates that the machine has no resale value. Maintenance on the mach in tool has been a problem, with an $800 cost this year. Future annual maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...