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2. A company is planning to purchase a machine for $50,000 which is expected to last 7 years, cost $3000 a year to run and

2. A company is planning to purchase a machine for $50,000 which is expected to last 7 years, cost $3000 a year to run and have a zero salvage value at that time. Assume capital cost to be 12% per year. What would it cost to operate the machine for a year?

Suppose there was a $10,000 salvage value assumed,what would the annual operating cost then be?

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