You are looking to evaluate the economic life of a new laboratory analyzer. It costs $450,000, plus $50,000 for installation. The analyzer will have a useful life of 6 years, but you need to know its most economic life. Assume straight line depreciation will result in $150,000 salvage value at the end of 6 years. Installation costs cannot be depreciated. Operating and maintenance costs are expected to be $40,000 the first year, increasing by $15,000 each year thereafter. Your MARR is 8%.

What is the O & M cost when n = 4 years?