EcoPrint Solutions: A printing machine, initially priced at $$16,000$ with no salvage value, incurs $$1,200$ in first$-$year maintenance costs, increasing by $$1,000$ annually. First$-$year operating expenses are $$1,000,$ rising by $$600$ each subsequent year.

With a Minimum Attractive Rate of Return $($MARR$)$ at $6\%,$ determine the economic life that minimizes the Equivalent Uniform Annual Cost $($EUAC$).$

GreenPress Equipment: A sustainable printing machine, purchased for $$15,000$ four years ago, currently valued at $$7,800.$ Operating expenses this year stand at $$2,500,$ with a yearly increment of $500.$ Maintenance costs this year are $$2,800,$ rising by $$600$ annually. Annually, the market value decreases by $12\%$ of the original purchase cost.

With an MARR of $6\%,$ calculate the total marginal cost in year $3.$

Determine the optimal time to replace the existing GreenPress machine with a new EcoPrint machine.

$6$

Multiple Choice $0\mathrm{.}5$ points

The economic life of EcoPrint Solutions

$1$ year

$2$ years

$3$ years

$4$ years

$5$ years

$6$ years