Part A: [15 points] You just purchased a new milling machine for $100,000. The market value for this machine declines by 10% each year from its previous year. The max. useful life is 10 years. The O&M costs are $2000 in the first year and increase by 30% each year. For simplicity, the numbers are provided in the following table:

n	market value	o &m costs
0	100000	-
1	90000	2000
2	81000	2600
3	72900	3380
4	65610	4394
5	59049	5712
6	53144	7426
7	47830	9654
8	43047	12550
9	38742	16315
10	34868	21209

If the interest rate is 12%, what is the economic service life of the machine? And what is its corresponding equivalent annual costs? (You do not need to try the 10 years. Just try years 5, 6, and 7)

PLEASE SOLVE SHOWING ALL STEPS AND DRAWING CASH FLOWS