Cost associated with the optimal economic life of machine

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Reference no: EM132030369

A machine costs $18849 and is expected to have a scrap value of $2833 whenever it is retired. Operating and Maintenance costs are $1183 for the first year and expected to increase by $1959 thereafter. If the MARR is 12%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.

Reference no: EM132030369

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