Question: 4 - 9 1 . An electronic device is available that will reduce this year's labor costs by $ 8 , 0 0 0 .

4-91. An electronic device is available that will reduce this
year's labor costs by $8,000. The equipment is expected to
last for 10 years. Labor costs increase at a rate of 5% per
year and the interest rate is 10% per year. (4.12)
a. What is the maximum amount that we could justify
spending for the device?
b. What is the uniform annual equivalent value (A) of
the labor costs over the eight-year period?
4-91. An electronic device is available that will reduce this year's

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