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A machine tool was purchased two years ago for $40,000. This device can be sold today for $15,000. Or if it is kept, it can
A machine tool was purchased two years ago for $40,000. This device can be sold today for $15,000. Or if it is kept, it can be sold at the end of each of the next 6 years for $12,000, $10,000, $8,000, $6,000, $4,000, or $2,000. It is estimated that the annual maintenance costs for the next 6 years will be $2, 700, $2, 900, $3, 300, $3, 700, $4, 200, and $4, 700. i. Calculate the marginal cost for each of the next 6 years if the MARR is 12%. ii. If a new machine tool has a minimum EUAC of $7,000, when should the current machine tool be replaced
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