What is the economic life of the machine

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A machine has a ?rst cost of $10,000. Its market value declines by 20% annually from its previous year’s market value. The repair costs are covered by the warranty in Year 1, and then they increase $600 per year. The ?rm’s MARR is 15%.

a) Find the minimum EUAC for this machine.

Reasoning/Work:

b) What is the economic life of the machine?

Reference no: EM131543557

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