2. 9.2 A robotic arm purchased 1 year ago for $85,000 costs more to operate than anticipated....

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2. 9.2 A robotic arm purchased 1 year ago for $85,000 costs more to operate than anticipated. When purchased, it was expected to be used for 10 years with annual maintenance costs of $37,000 and a salvage value of $10,000. However, last year, it cost the company $46,000 to maintain it, and these costs are expected to escalate to $48,000 this year and increase by $2000 each year thereafter. The salvage value is now estimated to be $85,000 − $10,000k, where k is the number of years since the arm was purchased. Also, it will be useful for a maximum of 5 more years. Determine the values of P, AOC, n, and S for a replacement study performed now.

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Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

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