A new bottle-capping machine costs 43,000, including 10,000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line depreciation). Operating and maintenace costs are expected to be 3,500 for the first year, increasing by 1,000 each year thereafter. Interest is 10%.

Construct a spreadsheet that has the following headings: Year, Salvage Value, Maintenance Costs, EAC (Capital Costs), EAC (Operating Costs), and EAC (Total Costs). Compute the EAC (Total Costs) if the bottle capper is kept for n years, n = 1,...,8.

What is the economic life of the bottle capper (in years)? [3/25]

Complete the row of the table indicating the economic life for this project

NOTE: Use 5 significant figures in your calculations, and round your answers for the table below to the nearest dollar.

			EAC	EAC	EAC
Year	Salvage	Maintenance	Capital	Maintenance	Total
[3/25]	[3/25]	[4/25]	[5/25]	[5/25]	[2/25]