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5) You purchase a machine for $80,000 now, with a salvage value of $25,000 in 10 years. The machine will have O&M costs and cost

5)

You purchase a machine for $80,000 now, with a salvage value of $25,000 in 10 years. The

machine will have O&M costs and cost of raw goods totaling $30,000 per year. The machine

will produce 5,000 high-quality parts per year. If i = 9% annual rate compounded annually, what

is the cost per high-quality part produced?

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