Question: A machine sells for $10,000 and has a salvage value of $1000 at the end of 10 years. The annual maintenance expense of the machine

A machine sells for $10,000 and has a salvage value of $1000 at the end of 10 years. The annual maintenance expense of the machine is $500. Assuming 5% interest:

a) calculate the periodic charge of the asset

b) calculate the capitalize cost of the asset.

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