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MNC Inc. needs to replace its machinery. Machine 1 has a life of 8 yours Machine 2 has a life of 6 years The initial

MNC Inc. needs to replace its machinery. Machine 1 has a life of 8 yours Machine 2 has a life of 6 years The initial outlay and the operating cost (in rupees) associated with the system are as follows: Calculate the annual capital charge associated with the two machinery if the cost of capital is 12% p.a. Year Machine 1 Machine 2 10 50 lakhs 45 Lakhs 1 16 7 N 2 8 8 3 | 8.5 12 14 19 12 15 9 14 6 11 15 7 12 8 12.5

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