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The new machine costs $10,000 and will have operating costs of $2,000 in the first year, increasing by $800 per year thereafter. The expected salvage

The new machine costs $10,000 and will have operating costs of $2,000 in the first year, increasing by $800 per year thereafter. The expected salvage value is $6,000 after one year and decline 15% each year. The company requires a rate of return of 15%. Find the economic service life for this machine. [you can stop your calculation once you compute economic service life]

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