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A new piece of production machinery has the following costs Investment cost $25,000 Annual operating and maintenance cost- $2000 in year 1 and then increasing
A new piece of production machinery has the following costs Investment cost $25,000 Annual operating and maintenance cost- $2000 in year 1 and then increasing by $500 per year Annual cost for risk of breakdown $5000 per year for 3 years, then increasing by $1500 per year Useful life 7 years MARR-15% Market Value: EOY MV 1 $18,000 2 $13,000 3 $9,000 4 6,000 5 $4,000 6 $3,000 7 2,500 For year4, calculate the loss in market value cost of capital O&M cost , Breakdown risk cost , and total marginal cost (HINT: enter numbers only, skip commas and $ symbols)
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