Determine minimum equivalent uniform annual cost

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An industrial sewing machine costs $8273 and is expected to have a scrap value of $3595 whenever it is retired. Operating and Maintenance costs are $1697 for the first year and expected to increase by $1930 thereafter. If the MARR is 9%, 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: EM132030381

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