The initial cost for a laser cutter is $12,000. It is anticipated that its market value at the end of any year will be 1
Posted: Thu May 19, 2022 2:31 pm
The initial cost for a laser cutter is $12,000. It is
anticipated that its market value at the end of any year will be
18% less than its market value at the end of that year. In other
words,
its market value is reduced by 18% each year. The repair costs are
covered by the warranty in Year 1. However, the repair cost in Year
2 is $500 and increases by $500 each year.
This company has an MARR of 15%.
What is the minimum EUAC (to the closest dollar) of this
cutter?
anticipated that its market value at the end of any year will be
18% less than its market value at the end of that year. In other
words,
its market value is reduced by 18% each year. The repair costs are
covered by the warranty in Year 1. However, the repair cost in Year
2 is $500 and increases by $500 each year.
This company has an MARR of 15%.
What is the minimum EUAC (to the closest dollar) of this
cutter?