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Paragraph Styles A manufacturing equipment costs $7800 and has no salvage value. Maintenance costs are expected to be $0 for the first year but increases
Paragraph Styles A manufacturing equipment costs $7800 and has no salvage value. Maintenance costs are expected to be $0 for the first year but increases by $500 every year after. Operating costs are expected to be $1400 every year. If the machine will last 8 years and the interest rate is 10% calculate the machine's economic life that minimizes the EUAC. Year EUAC of Operating costs (4 marks) EUAC Total (CRC+MC+OC) EUAC of Capital Recovery Cost EUAC of Maintenance Costs 1 2 3 4 5 6 7 8 9 10 Complete the Table given: EUAC of Capital Recovery Cost (CRC): 7800(A/P,10%, t) EUAC of Maintenance Costs (MC): 500(A/G,10%, t) Plot the EUAC of CRC, MC, OC and Total Cost vs Years on Excel Determine the economic life of the equipment by identifying the year at which the minimum total EUAC is obtained. Please submit Excel graph with your your solution. I (6 marks) (3 marks) Display Settings Focus Le
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