Question: A machine tool costs $15,000 and does not have any salvage value. The manufacturer's warranty covers the maintenance and repair cost for the first year.

A machine tool costs $15,000 and does not have any salvage

A machine tool costs $15,000 and does not have any salvage value. The manufacturer's warranty covers the maintenance and repair cost for the first year. The maintenance and repair costs for the second year will be $2,000 and will increase for $800 for the subsequent years. The operating costs for the first year will be S500 and will increase for S500 for the subsequent years. Consider an analysis period of 8 years and interest rate of 8%, and find the minimum cost life and minimum EUAC. Attach the graph of EUAC vs. number of years as well. (30 pts)

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