Costs are expected to increase

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Reference no: EM13771403

A CNC mill was purchased 4 years ago for $50,000. The current market value is $26,000, which will decline as follows over the next 5 years: $20,000, $16,250, $14,000, $12,000, and $8500. The O & M costs are estimated to be $6000 this year. These costs are expected to increase by $2000 per year starting year 2. MARR = 10%

Reference: Ref 13-1

The EUAC for defender in year 2 is ____________.

A. $15,400

B. $14,600

C. $14,195

D. $ 14,100

Reference no: EM13771403

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