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Defender: . Current trade-in (re-sale) value = $5,000, decreasing at an annual rate of 40% from the previous year's value o O&M - $1000 in

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Defender: . Current trade-in (re-sale) value = $5,000, decreasing at an annual rate of 40% from the previous year's value o O&M - $1000 in year 1, increasing by $600 per year Using Marginal analysis find the Marginal Cost of keeping the machine for the 2nd year. MARR = 12%

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