Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase

Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) Cost operation at the end of year ($) 3000 4000 5000 1 2 3 4 5 6 7 8 9 10 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 500

Step by Step Solution

3.44 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Answer We need to compute economic life at each year and see the lowest among them Given Purchase va... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Operations Research

Authors: Frederick S. Hillier, Gerald J. Lieberman

10th edition

978-0072535105, 72535105, 978-1259162985

More Books

Students also viewed these Accounting questions