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That is all the information provided for the question. 4. Using tabular approach (or computational method) find the economic life of a tensile testing machine
That is all the information provided for the question.
4. Using tabular approach (or computational method) find the economic life of a tensile testing machine with a first cost of $30,000. The salvage value is estimated to be $25,000 at the end of the first year, decreasing by $3,000 in the second year and thereafter. The operating costs are estimated to begin at $2,000, increasing by $1,000 in the second year and thereafter. Interest rate is known to be 12% for project evaluation. Use tabular approach by completing the following table and show your work by providing the annual cost calculation for the first year. (30pt) Market Value @ Decrease in Market Value Interest on Investment Capital Recovery Cost for Year O&M Costs Total Costs EOY Present Equivalent Cost Sum of PE Cost Annual Equivalent Cost EOY 1 2 3 4Step by Step Solution
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