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A company is considering purchasing a machine for manufacturing that costs $30,000. The salvage value and O&M costs for the next 7 years is given in the following table. The Equivalent Uniform Annual Cost (EUAC) is computed for each year assuming the equipment was sold at the end of that year and a MARR of 6%. What is the optimal economic life of the machine?

Yr	Salvage Value	O&M Costs	EUAC
1	$15,000	$1,200	$18,000
2	$14,400	$2,100	$11,909
3	$13,800	$3,000	$10,753
4	$13,200	$3,900	$10.825
5	$12,600	$4,800	$11,382
6	$12,000	$5,700	$12,178
7	$11,400	$6,600	$13,106