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Suppose a machine has a current resale price of $6000 and an annual operating and maintenance cost of $2000. Each additional year thereafter, the operating
Suppose a machine has a current resale price of $6000 and an annual operating and maintenance cost of $2000. Each additional year thereafter, the operating and maintenance cost increases by five hundred and the resale value falls by thirty percent. The firm has a MARR of 9%. Using marginal analysis, find the cost of keeping the machine for its fourth year of service. The answer is with $20 of:
Answer Choices:
a) 4182
b) 4222
c)4262
d) 4302
e) 4342
f) none of the above choices
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