Salvage value equal to original cost

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A machine cost $15000 new has a 7 year life and a salvage value equal to 10% of its original cost. The annual maintenance cost of this machine is $500 the first year, with an increase of $100 each year hereafter; the annual operating cost is $400 per year. Determine the EUAC of this machine if the interest rate is 8% per year compounded annually

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Reference no: EM13948719

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