Question: A new $40,000 bottling machine has just been installed in a plant. It will have no salvage value when it is removed. The plant manager

A new $40,000 bottling machine has just been installed in a plant. It will have no salvage value when it is removed. The plant manager has asked you to estimate the economic service life for the machine, ignoring income taxes. He estimates that the annual maintenance cost will be constant at $2500 per year. What service life will result in the lowest equivalent uniform annual cost?

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