A machine was bought for $$7900$ at the start of the year and has an $8-$year life. If sold at the end of the year it would sell for $$7150.$ The general rate of inflation is $4\%$ and the asset's replacement cost at the year $-$ end is $$8160.$ It is expected to produce $500$ units per year which could be sold for $$2$ each.

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