Using equivalent uniform annual worth

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A machine, with a first cost of $20,000, is expected to save $1,500 in the first year of operation and the savings should increase by $200 every year until (and including) the ninth year, thereafter the savings will decrease by $150 until (and including) the 16th year.

Using equivalent uniform annual worth, is this machine economical? Assume a MARR of 9%.

Reference no: EM131048505

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