What is the most economic life

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An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life?

Reference no: EM131810489

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Estimate production and materials requirements : What production level next year will be required to meet the targets
What is its economic life if its salvage values : The installation cost is $8K, and removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows?
Future annual maintenance costs : Future annual maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service?
Compute the life for challenger : Salvage value in any year is zero. Assume a 10% interest rate and ignore income taxes. Compute the life for this challenger having the lowest EUAC.
What is the most economic life : The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life?
Thomas martin installed production machinery : Five years ago, Thomas Martin installed production machinery that had a first cost of $25,000. At that time initial yearly costs were estimated
What is net income : Given the following part of an incomplete 10 column worksheet, what is net income?
Replace the existing machinery with the new unit : If Thomas Martin uses an 8% before-tax MARR, when, if at all, should he replace the existing machinery with the new unit?
Annual costs for operating-automated packing equipment : The annual costs for operating, maintenance, and insurance, as well as market value data for each year of the equipment's 10-year useful life are as follows.

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