You purchased a machine three years ago for $150,000. Its current value is $100,000. The annual operating cost for this device is $11,000 in year 1 and the operating cost increases by 10% pear year compounded annually. The salvage value decreases by 20 per year compounded annually. Your interest rate is 6% per year.

What is the remaining economic service life of the machine and what is the equivalent uniform annual total cost at the ESL?

ESL( years) Equivalent total annual cost ESL( years) Equivalent total annual cost