Machine X has an initial cost of $14,000. It is expected to last 10 years, to...
Machine X has an initial cost of $14,000. It is expected to last 10 years, to cost $255 per year to maintain and to have a salvage value of $6,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 7% interest is approximately _____________.
Homework Answers
. The equivalent uniform annual cost of the machine at 7% interest is
EUAC = 14,000(A/P, 7%, 10) + 255 - 6,000(A/F, 7%, 10) [ from table, we get values]
= 14000*0.1424 + 255 - 6000*.0724 = 1,814.2
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Machine X has an initial cost of $14,000. It is expected to last
10 years, to...
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salvage value 10,000
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purchased 1/1/13
machine 3:
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salvage value 6,000
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