Exercise 6.4: Ajax Corporation would like to purpose a machine for $375,000 with a life span of 10 years.

They estimate the salvage value to be 6% of the initial machine cost. If other operating costs are estimated

to be $32,500 for the first year and increasing by 10% each year, what are the capital recovery cost

and the equivalent uniform annual cost (EUAC) for total costs? The interest the company uses to justify their

investments is 18% per year compounded yearly.