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Your division is considering the purchase if a new packaging machine for $200,000. You project that the operating and maintenance costs will be $50,000 this

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Your division is considering the purchase if a new packaging machine for $200,000. You project that the operating and maintenance costs will be $50,000 this year and that they will increase by $20,000 per year. The salvage value is expected to be $150,000 at any time you sell the machine for the next several years. Your company MARR is 10%. (a) What is the optimum economic life you predict for the machine? (b) The old packaging machine in the company will have an EUAC of $128,000 if you keep it for its optimum economic life. Should you buy the new packaging machine

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