A commercial 3D printer is purchased for $300,000. 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 $12,500; these costs increase by $5,000 each year. What is the optimal replacement interval (in years) and minimum EUAC for the printer, assuming a MARR of 12% is used?
A commercial 3D printer is purchased for $300,000. 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 $12,500; these costs increase by $5,000 each year. What is the optimal replacement interval (in years) and minimum EUAC for the printer, assuming a MARR of 12% is used?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A commercial 3D printer is purchased for $300,000. 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 $12,500; these costs increase by $5,000 each year. What is the optimal replacement interval (in years) and minimum EUAC for the printer, assuming a MARR of 12% is used?
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