You are considering making an investment into a new machine. You estimate that this machine with cost $(200+X) per month to maintain and will initially cost $(25,000 + 200X). It has an estimated life of 10 years at which time the salvage value is estimated at $15,000.

a. Find the equivalent monthly cost of the investment over the ten year period assuming an interest rate of 10%. Equivalent monthly cost = $ ____________ per month.

b. Find the equivalent present value of all associated costs assuming an interest rate of 8%.

X=20