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Q. 5 - 4 . Evaluate machine XYZ on the basis of the PW method when the MARR is 10% per year. Relevant cost data

Q.5-4. Evaluate machine XYZ on the basis of the PW method when the MARR is 10% per year. Relevant cost data are as follows:

Machine XYZ

Investment cost

$18,000

Useful life

20 years

Market value

$5,000

Annual operating expenses

$250

Overhead cost-end of 7th year

$500

Overhead cost-end of 14th year

$800

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