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(15 Marks) A roller conveyor system used to transport cardboard boxes along an order-filling line costs $100 000 plus $20 000 to install. It is
(15 Marks) A roller conveyor system used to transport cardboard boxes along an order-filling line costs $100 000 plus $20 000 to install. It is estimated to depreciate at a declining-balance rate of 25 percent per year over its 15-year useful life. Annual maintenance costs are estimated to be $6000 for the first year, increasing by 20 percent every year thereafter. In addition, every third year the rollers must be replaced at a cost of $7000. Interest is 10 percent. (Continue on page 2)a. Construct a spreadsheet that has the following headings: Year, Salvage Value, Maintenance Costs, EAC(capital costs), EAC(maintenance costs), and EAC(total costs). Compute the EAC(total cost:) if the conveyor were to be kept for n years, n=1, ..., 15. b. Construct a chart showing the EAC(capital cost:), EAC(maintenance costs), and EAC(total cost:) if the conveyor were to be kept for n years, n=1, . .., 15. c. What is the economic life of the roller conveyor system
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