Question
A retail store just purchased a floor cleaning robot for $288,000. First year's O&M costs are expected to be $21,600 and they are expected to
A retail store just purchased a floor cleaning robot for $288,000. First year's O&M costs are expected to be $21,600 and they are expected to increase by 5% each year over the previous year's cost from the second year onwards. The store expects to sell the machine for $28,800 at the end of its useful life of 6 years. MARR is 10% per year compounded annually. a) What is the capital recovery (CR) cost for this new floor cleaning robot over its life of 6 years? b) Determine the equivalent uniform annual cost (EUAC) for owning and operating this floor cleaning robot over its life of 6 years.
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