A machine that was used for 8 years has a market value of $2500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Fill the whites with the results. a) Fill the whites: The loss of value in the market in year 2 is $ . The loss in interest in the year 2 $ . The Marginal Cost in year 2 is $ b) If the minimum EUAC of the machine is $5500, when should the machine be replaced? Anus (0.1.2.34 or 5)

A machine that was used for 8 years has a market value of $2500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Fill the whites with the results. a) Fill the whites: The loss of value in the market in year 2 is $ . The loss in interest in the year 2 $ . The Marginal Cost in year 2 is $ b) If the minimum EUAC of the machine is $5500, when should the machine be replaced? Anus (0.1.2.34 or 5)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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