Question: A new widget machine costs $50000, including $5000 for installation. The machine is expected to have a useful life of eight years with no salvage
A new widget machine costs $50000, including $5000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line depreciation). Operating and maintenance costs are expected to be $2000 for the first year, increasing by $1,000 each year thereafter. Interest is 10%. Complete the Salvage and Maintenance columns in the table shown and calculate the EAC Capital for year 4. Round all answers to the nearest dollar -- enter the EAC Capital of Year 4 below and submit the Table with your work.
|
Year |
Salvage |
Maintenance | EAC Capital | EAC Maintenance | EAC Total |
| 0 | 45000 |
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| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | ????? | ||||
| 5 | |||||
| 6 | |||||
| 7 | |||||
| 8 |
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