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A machine has a first cost of $ 1 0 , 0 0 0 . Its market value declines by 2 0 % annually. The

A machine has a first cost of $

10, 000 .

Its market

value declines by

20 %

annually. The repair costs

are covered by the warranty in Year

1,

and then they

increa $

600

per year. The firm's MARR is

15 % .

Find the minimum EUAC for this machine and its

economic life.

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