Determine the marginal cost to extend service

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Reference no: EM131809910

A machine that has been used for 1 year has a salvage value of $10,000 now, which will drop by $2000 per year. The maintenance costs for the next 4 years are $1250, $1450, $1750, and $2250. Determine the marginal cost to extend service for each of the next 4 years if the MARR is 8%. (Answer: MC1 = $4050)

Reference no: EM131809910

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