Question: A. 10 years B. 7 years C. 5 years D. 1 year A hospital in The Upper Cumberland area bought a diagnostic machine at a

A. 10 years B. 7 years C. 5 years D. 1

A. 10 years

B. 7 years

C. 5 years

D. 1 year

A hospital in The Upper Cumberland area bought a diagnostic machine at a cost of $40,000. Maintenance cost is expected to remain constant throughout the life of this machine at $2,000 per year. The salvage value is estimated to be '0' at the end of the useful life of 10 years. Determine the economic life of this machine. MARR = 10%

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