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Find the marginal cost of keeping the machine

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Reference no: EM132596510

Defender:

Current trade-in (re-sale) value = $5,000, decreasing at an annual rate of 20% from the previous year's value

O&M = $1000 in year 1, increasing by $500 per year

Using Marginal analysis find the Marginal Cost of keeping the machine for the 2nd year. MARR = 10%

Reference no: EM132596510

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