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 $85,000 costs more to operate than
anticipated. At the time of the purchase, it was expected to be used for 10
years with annual maintenance costs of $22,000 and a salvage value of
$10,000. However, last year, it incurred a cost $31,000, which is expected to
escalate to $32,400 this year and increase by $1,400 each year thereafter. The
market value is now estimated to be $78,000-$10,000k, where k is the
number of years since the machine was purchased. It is now estimated that the
machine will be useful for a maximum of 4 more years. A replacement study is
to be performed. Determine the values of P,n,AOC for year 4 and S of this
defender.
The value of P is $
The value of n is
years.
The AOC for year 4 is
The value of S is $
 A machine purchased a year ago for $85,000 costs more to

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