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A new machine will cost $17,000 and will have a resale value of $14,000 after 5 years. Special tooling for the machine will cost $5000.

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A new machine will cost $17,000 and will have a resale value of $14,000 after 5 years. Special tooling for the machine will cost $5000. The tooling will have a resale value of $2500 after five years. Maintenance will be $2000 per year. The effective annual compound interest rate is 6%. What will be the average annual cost of ownership during the five year period

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