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Could you please explain how this answer was found? Thanks! Prob 2. (30 pts) A single machine is needed to perform a specified function for

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Could you please explain how this answer was found?

Thanks!

Prob 2. (30 pts) A single machine is needed to perform a specified function for the next four years, after which the function and machine will no longer be needed. The purchase price of a machine varies over the next four years according to the following table. Year Now One Year from Now $ 33,000 Two Years from Now $ 38,000 Three Years from Now $ 47,000 Purchase Price $ 25,000 The salvage value of a machine depends only on its length of service and is given by the following table. 1 Year 2 Years 4 Years 3 Years Length of Service Salvage Value Service Mom Go S3000 $ 17,000 $ 6,000 $ 3,000 S . $ 1,000 The annual operating cost varies with length of service, as follows New 1 Year 2 Years 3 Years Length of Service Annual Operating Cost Amuse S 3,0 $ 3,000 s 5,000 $ 5,000 $8,000 $ 8,000 s 10,00 $ 10,000

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