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(b) Use the total marginal cost to find the economical service life for a machine that has the cash flow estimates as shown in Table
(b) Use the total marginal cost to find the economical service life for a machine that has the cash flow estimates as shown in Table 2. Use an interest rate of 14% per year. Given the EUAC for year 1, 2 and 6 are RM67,000, RM62,093 and RM57,300, respectively. Table 2 Year Salvage value, RM Operating cost, RM/year 100,000 75,000 28,000 2 60,000 31,000 3 50.000 34,000 40,000 34.000 25,000 34,000 15,000 45,000 (b) Use the total marginal cost to find the economical service life for a machine that has the cash flow estimates as shown in Table 2. Use an interest rate of 14% per year. Given the EUAC for year 1, 2 and 6 are RM67,000, RM62,093 and RM57,300, respectively. Table 2 Year Salvage value, RM Operating cost, RM/year 100,000 75,000 28,000 2 60,000 31,000 3 50.000 34,000 40,000 34.000 25,000 34,000 15,000 45,000
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