machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the purchase, it was expected to be used for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. However, last year, it incurred a cost $38,000, which is expected to escalate to $39,300 this year and increase by $1,300 each year thereafter. The market value is now estimated to be $81,000–$10,000k, where k is the number of years since the machine was purchased. It is now estimated that the machine will be useful for a maximum of 6 more years. A replacement study is to be performed. Determine the values of P, n, AOC for year 6 and S of this defender.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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A machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the purchase, it was expected to be used for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. However, last year, it incurred a cost $38,000, which is expected to escalate to $39,300 this year and increase by $1,300 each year thereafter. The market value is now estimated to be $81,000–$10,000k, where k is the number of years since the machine was purchased. It is now estimated that the machine will be useful for a maximum of 6 more years. A replacement study is to be performed. Determine the values of P, n, AOC for year 6 and S of this defender.

 

 

The value of is $ _______ .

 

The value of n is_______  years.

 

The AOC for year 6 is______  .

 

The value of S is $______  .

 
 
 
 
 
 
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