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A machine was purchased for $ 40,000. The maintenance and operating costs and estimated salvage values are shown in the attached table. With a value
A machine was purchased for $ 40,000. The maintenance and operating costs and estimated salvage values are shown in the attached table. With a value of i = 10%, determine the years the asset must be in service before it is replaced.
YEAR OPERATION COSTS Salvage Value MAINTENANCE COST 1 2. 3 4 $1.500 1,600 1.700 1.800 1.900 2.000 2.100 2.200 2.300 2.400 5 $2.000 2.000 2.000 2.000 2.000 2.100 2.700 3.300 3.900 4.500 $25.000 25.000 22.000 22.000 15.000 5.000 5.000 0 6. 7 0 8 9 10 0
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