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You have decided to invest $ 1 8 0 , 0 0 0 for manufacturing equipment for a new product line. The manufacturer of the

You have decided to invest $180,000 for manufacturing equipment for a new product line.
The manufacturer of the equipment has prescribed the following preventative maintenance
progam to ensure the equipment will perform as expected:
After 12,000 hours of operation, maintenance that costs: $23,000
After 24,000 hours of operation, maintenance that costs: $27,500
After 36,000 hours of operation, maintenance that costs: $32,000
The operating costs of the equipment is expected to be: $10,000 for every 6000 hours use.
The life of the equipment is: 6 years
The salvage value of the equipment is expected to be: $29,700 after 6 years
You expect to use the equipment 6000 hours per year.
What is the equivalent annual cost of owning the equipment?
MARR is 13

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