The maintenance foreman of a plant was reviewing his maintenance records found that one of the machines, a large press, had the following maintenance cost record: 5 years ago $ 600 4 years ago 700 3 years ago 800
The maintenance foreman of a plant was reviewing his maintenance records found that one of the machines, a large press, had the following maintenance cost record: 5 years ago $ 600 4 years ago 700 3 years ago 800
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:ФЫ В А П Р О ВАПРОЛДЗАПРОЛДЖЭ
ЯЧСМИТНЧСМИТЬБНСМИТЬБЮ
SOLVE STEP BY STEP
2 The maintenance foreman of a plant was
3 reviewing his maintenance records found that
4 one of the machines, a large press, had the
5 following maintenance cost record:
6
7
8
9
10
11
12
13
5 years ago $ 600
4 years ago 700
3 years ago 800
2 years ago 900
Last year 1000
After consulting with a lubrication specialist,
he changed the preventive maintenance
schedule.
14
15
16
He now estimates that maintenance will be
17 $900 this year, and it will decrease by $100 a year
18 in each of the following 4 years.
19
If his estimates of the future are correct,
20 what will be the equivalent uniform annual
21 maintenance cost for the 10-year period?
Assume interest at 8%.
22
23 Build model
-ИЦУКЕНГ ШУКЕНГ Ш ЩЗКЕНГШЩЗХЪ
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