- 7 Problem 7 2x Value A Machine Has A First Capital Cost Of 12 000 The Repair Costs Are Covered By The Warranty In 1 (47.58 KiB) Viewed 30 times
7. Problem 7 (2x value) A machine has a first (capital) cost of $12,000. The repair costs are covered by the warranty in
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7. Problem 7 (2x value) A machine has a first (capital) cost of $12,000. The repair costs are covered by the warranty in
7. Problem 7 (2x value) A machine has a first (capital) cost of $12,000. The repair costs are covered by the warranty in year 1, then they increase by $450 per year. Assume an interest rate of 10%. (a) Calculate the EUAC for the first 10 years of the machine's use, rounding to the nearest dollar. (b) Identify the minimum EUAC for this machine, and the year it occurs. ©) Based on this value, according to the techniques we have learned, how many years should the machine be used before it is sold?