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a) A $50,000 machine will be purchased by a company whose interest rate is 10%. The installation cost is $8,000, and removal costs are insignificant.

A $50,000 machine will be purchased by a company whose interest rate is 10%. The installation cost is $8,000, and removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows?

b) An overhaul costing $9,000 is needed after 5years service. image text in transcribed

Year 1 | 2 and later s $35K drop $5K per year O&M $8K up $1.65K per year

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