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Q3. A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life.

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Q3. A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life. Yearly maintenance cost is estimated to be 15000 per vear for the first 12 vears and 20 000 for the rest of the machine useful life. The machine required a major overhaul costing 50 000 at the end of the tenth year of serv and operating this machine if the interest rate is 8% per year? (6 mark) ice? What is the future value of all the cost associated with owning

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