A commercial 3D printer is purchased for $280,000. The salvage value of the printer decreases by 40% each year that it is held. The cost to operate and maintain the machine the first year it is used is $12,000; these costs increase by $4,500 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 13% is used? Click here to access the TVM Factor Table Calculator. ORI: EUAC*: $ years Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5 for the EUAC*.
A commercial 3D printer is purchased for $280,000. The salvage value of the printer decreases by 40% each year that it is held. The cost to operate and maintain the machine the first year it is used is $12,000; these costs increase by $4,500 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 13% is used? Click here to access the TVM Factor Table Calculator. ORI: EUAC*: $ years Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5 for the EUAC*.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A commercial 3D printer is purchased for $280,000. The salvage value of the printer decreases by 40% each year that it is held. The
cost to operate and maintain the machine the first year it is used is $12,000; these costs increase by $4,500 each year. What is the
optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 13% is used?
Click here to access the TVM Factor Table Calculator.
ORI:
EUAC*: $
years
Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5 for the
EUAC*.
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