Annual cost of owning and operating

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Reference no: EM131806615

A machine has a first cost of $150,000, an annual operation and maintenance cost of $2500, a life of 10 years, and a salvage value of $30,000. At the end of Years 4 and 8, it requires a major service, which costs $20,000 and $10,000, respectively. At the end of Year 5, it will need to be overhauled at a cost of $45,000. What is the equivalent uniform annual cost of owning and operating this particular machine?

Reference no: EM131806615

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