Determine the marginal cost to extend service

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Reference no: EM131262764

A packaging machine that has been used for 2 years has a salvage value of $12,000 now which will drop by $2000 per year. Over the next 5 years, the maintenance costs for the machine are expected to be $2500, $2900, $3500, 4500, and 4500. If the MARR is 8%, determine the marginal cost to extend service for each of the next 5 years.

Hint: MC2 = $5700

Reference no: EM131262764

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