Question
Problem 30. A machine that was used for five years has a market value of $10,000 now, which will decline each year to 95% of
Problem 30. A machine that was used for five years has a market value of $10,000 now, which will decline each year to 95% of the previous year's value. For example, at the end of the first year, the market value will be $ 9,500 and it continues to decline. Maintenance costs for the next 4 years are estimated at $1,100 at the end of this year and increasing by $500 each year. Determine the marginal cost of extending the service for one year, for the next 4 years if the MARR is 8%. Fill in the following blanks:
The loss of market value in year 1 is $_________________ Loss in interest in year 1 $______________ Marginal Cost in year 1 is $__________
To receive credit, results have to coincide with procedures sent.
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