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Quick Wash Laundromat wants to provide good customer service by keeping their washers in good condition. They frequently replace each of their washers by identical
Quick Wash Laundromat wants to provide good customer service by keeping their washers in good condition. They frequently replace each of their washers by identical washers. The following information is for one of their recently bought washers. The purchase cost is $7,500 and delivery/installation cost is $500. The estimated maintenance and repair costs for the first year is $2,000 and increases by $2,000 every year there after until the washer is replaced. Quick Wash Laundromat uses a MARR of 15% and a declining balance depreciation model with a rate of 40%. Assuming that all the cash flows occur at the end of each year calculate the following for the washer: a) Salvage value of the washer for the next 3 years. b) Economic life and EAC* for the washer
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