Question: A machine purchased a year ago for $ 8 5 , 0 0 0 costs more to operate than anticipated. At the time of the
A machine purchased a year ago for $ costs more to operate than
anticipated. At the time of the purchase, it was expected to be used for
years with annual maintenance costs of $ and a salvage value of
$ However, last year, it incurred a cost $ which is expected to
escalate to $ this year and increase by $ each year thereafter. The
market value is now estimated to be $$ where is the
number of years since the machine was purchased. It is now estimated that the
machine will be useful for a maximum of more years. A replacement study is
to be performed. Determine the values of AOC for year and of this
defender.
The value of is $
The value of is
years.
The AOC for year is
The value of is $
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