A new machine will cost $80,000. The expected market value of the machine at the end of each year, and the annual maintenance costs are given in the table below. Assuming 8% cost of capital, what is the economic life of the machine?

Year Market Value at the End Annual Maintenance Cost

0 80,000

1 65,000 9,000

2 55,000 8,000

3 47,500 9,000

4 42,500 11,000

5 37,500 14,000

6 30,000 18,000

Solve it using XL and show the functions that has been used