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An old asset is being evaluated in terms of its marginal cost. You are provided with the following information: Investment Cost: $ 4 0 ,

An old asset is being evaluated in terms of its marginal cost. You are provided with the following information: Investment Cost: $40,000 Annual Operating and Maintenance Cost: $3,500 in Year 1, increasing by $1,800 per year Annual Cost for Risk of Breakdown: $8,000 per year Useful Life: 6 years MARR (Minimum Attractive Rate of Return): 12% Market Values: Year 1: $25,000 Year 2: $21,000 Year 3: $17,000 Year 4: $12,000 Year 5: $7,000 Year 6: $2,000 Calculate the marginal cost of keeping this asset over its useful life.
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