SOLVE ! white spots

PROBLEM1 (Modified example 13-1) A piece of machinery costs $10,000 and has no salvage value after it is installed. The man- ufacturer's warranty will pay the first year's maintenance and repair costs. In the second year, maintenance costs will be $1000, and they will increase on a $1100 arithmetic gradient in subsequent years. Also, operating expenses for the machinery will be $400 the first year and will increase on a $600 arithmetic gradient in the following years. If interest is 8%, compute the machinery's economic life that minimizes the EUAC. That is, find its 10 12 8% IF THE MACHINERY IS RETIRED AT YEAR n at interest rate I EUAC of EUAC of EUAC of Cash flow Capital Mainternanc operating Total EUAC Capital Maintenanc Operating Recovery e & repair Costs if retired at Year, n Cost e & Repairs Cost Cost costs year n costs 14 0 $10,000.00 $400.00 24 $1,000.00 $1,000.00 18 3 $2,100.00 $1,600.00 19 4 200.00 $2.200.00 5 $4,300.00 $2,800.00 20 6 $5,400.00 $3,400.00 22 7 $6500.00 $4,000.00 23 8 $7600.00 ,600.00 24 9 $8,700.00 $5,200.00 25 $9,800.00 $5,800.00 10 11 $10,900.00 $6,400.00 26 12 $7,000.00 27 12,00 28 13 $7,600.00 13,10 29 200.00 $8,200.00 14 $8,800.00