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Explain clearly, don't copy from internet A machine that has been used for 8 years has a market value of $2,500 now, which decreases by

Explain clearly, don't copy from internet

A machine that has been used for 8 years has a market value of $2,500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Fill in the blanks with the results.

a) Fill in the blanks:

The loss in market value in year 2 is $ _________ . The interest loss in year 2 $_______ . The marginal cost in year 2 is $_________ .

b) If the minimum EUAC of the machine is $5500, when should the machine be replaced?

Year Answer . (0,1,2,3,4 or 5)

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