Engineering Economy 3

A new piece of production machinery has the following costs Investment cost =$25,000 Annual operating and maintenance cost = $2000 in Year 1 and then increasing by $500 per year Annual cost for risk of breakdown = $5000 per year for 3 years, then increasing by $1500 per year Useful life = 7 years MARR =15% Calculate the marginal cost of keeping this asset over its useful life