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A cabinet manufacturer wants to calculate the equivalent uniform annual cost associated with a machine it plans to purchase today and to operate for five
A cabinet manufacturer wants to calculate the equivalent uniform annual cost associated with a machine it plans to purchase today and to operate for five years. The following costs have been identified. Take the annual interest rate as 7% and answer the following questions Initial (Purchase) Cost Ammual Operating Cost Maintenance and Repair Costs $600,000 $8,000 $700 in year 1 $1,000 in year 2 $1,300 in year 3 $1,600 in year 4 $1,900 in year 5 $200,000 Market (Salvage) Value after Five Years Calculate the capital recovery cost of the machine, assuming the interest rate as provided above Choose... Calculate the EUAC of the machine taking the interest rate as provided above. Choose... Assume the revenues generated by this machine is 650000 per year. Calculate the FW for this investment. Choose
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