T0IAhswer:/vearsinu IThe maintenance cost of a certain machine is zero the first year and increasesby $200 per year for each year thereafter. The machine cost $2,000 and has nosalvage value at any time. Its annual operating cost is $1,000 per year. If the lemsinterest rate is 10%, what life will result in minimum AE(i) cost? Solve by trialand error, showing yearly costs in tabular form.

We have given the first cost of the machine P=$2000 Salvage value is zero at any time F=0 for all n…

Answered: The maintenance cost of a certain…

The maintenance cost of a certain machine is zero the f by $200 per year for each year thereafter. The machine salvage value at any time. Its annual operating cost is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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T0I
Ahswer:/vears
inu I
The maintenance cost of a certain machine is zero the first year and increases
by $200 per year for each year thereafter. The machine cost $2,000 and has no
salvage value at any time. Its annual operating cost is $1,000 per year. If the

lems
interest rate is 10%, what life will result in minimum AE(i) cost? Solve by trial
and error, showing yearly costs in tabular form.

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