Question: A new gear grinding machine for composite materials has a first cost of P = $100 000 and can be used for a maximum of

A new gear grinding machine for composite materials has a first cost of P = $100 000 and can be used for a maximum of 3 years . Its salvage value is estimated by the relation S = P 0 85 ) , where n is the number of years after purchase . The operating cost will be the the first $75 000 the first year and will increase by $10 000 per year thereafter . Use i = 18 % per year to determine the economic service life and corresponding AW

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