Givens: A new bottle capping machine costs $40000, plus $5000 for installation. The machine is expected to have a useful life of 8 years with no salvage value at that time (assume straight line depreciation). Operating and maintenance costs are expected to be $3000 for the first year, increasing by $1000 each year thereafter. Interest is 12%. Find: What is the economic life = service life of a bottle capper?
Givens: A new bottle capping machine costs $40000, plus $5000 for installation. The machine is expected to have a useful life of 8 years with no salvage value at that time (assume straight line depreciation). Operating and maintenance costs are expected to be $3000 for the first year, increasing by $1000 each year thereafter. Interest is 12%. Find: What is the economic life = service life of a bottle capper?
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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Transcribed Image Text:Givens: A new bottle capping machine costs $40000, plus
$5000 for installation. The machine is expected to have a
useful life of 8 years with no salvage value at that time
(assume straight line depreciation). Operating and
maintenance costs are expected to be $3000 for the first
year, increasing by $1000 each year thereafter.
Interest is 12%.
Find: What is the economic life = service life of a bottle
capper?
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