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An asset purchased 5 years ago for $75000 can be sold today for $15000. Operating expenses in the past have been $10000 per year, but
An asset purchased 5 years ago for $75000 can be sold today for $15000. Operating expenses in the past have been $10000 per year, but these are estimated to increase in the future by $1500 per year each year. It is estimated that the market value of the old asset will decrease by $1000 per year over the next 5 years. If the MARR used by the company is 15%, calculate the total marginal cost of ownership of this old asset (that is the defender) for each of the next 5 years.
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