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21 - A new piece of production machinery has the following costs: Investment cost = $35,000 Annual operating and maintenance cost = $3000 in Year 1 and then increasing by $1500 per year Annual cost for risk of breakdown = $7000 per year Useful life = 5 years ● ● MARR = 10% The asset market values in each year are estimated to be: Year 1 2 3 4 5 Market Value $20,000 $17,000 $13,000 $8,000 $2,000 Calculate the marginal cost of keeping this asset over its useful life.

21 - A new piece of production machinery has the following costs: Investment cost = $35,000 Annual operating and maintenance cost = $3000 in Year 1 and then increasing by $1500 per year Annual cost for risk of breakdown = $7000 per year Useful life = 5 years ● ● MARR = 10% The asset market values in each year are estimated to be: Year 1 2 3 4 5 Market Value $20,000 $17,000 $13,000 $8,000 $2,000 Calculate the marginal cost of keeping this asset over its useful life.

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
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21 - A new piece of production machinery has the following costs: Investment cost = $35, 000 Annual operating and maintenance cost = $3000 in Year 1 and then increasing by $1500 per year • Annual cost for risk of breakdown = $7000 per year Useful life = 5 years ● MARR = 10% The asset market values in each year are estimated to be: Year 1 2 3 4 5 Market Value $20,000 $17,000 $13,000 $8,000 $2,000 Calculate the marginal cost of keeping this asset over its useful life.
Transcribed Image Text:21 - A new piece of production machinery has the following costs: Investment cost = $35, 000 Annual operating and maintenance cost = $3000 in Year 1 and then increasing by $1500 per year • Annual cost for risk of breakdown = $7000 per year Useful life = 5 years ● MARR = 10% The asset market values in each year are estimated to be: Year 1 2 3 4 5 Market Value $20,000 $17,000 $13,000 $8,000 $2,000 Calculate the marginal cost of keeping this asset over its useful life.
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