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Four company bought a copy machine. In the first year its operay then it will increase by $50 every year until year 10, where

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Answer #1

a. Present worth of O&M cost = 100 * (P/A, 10%,10) + 50 * (P/G, 10%,10)

= 100 * 6.144567 + 50 * 22.891342

= 1759.02

b. Annual worth = 100 + 50 * (A/G, 10%,10)

= 100 + 50 * 3.725461

= 286.27

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