Question: please show work and formulas used A special milling machine is being installed at a first cost of $10,000. Mainte- nance cost is estimated to

please show work and formulas used

A special milling machine is being installed at a first cost of $10,000. Mainte- nance cost is estimated to be $5,500 for the first year and will increase by 6% each year. If interest is 12% and the salvage value is $2,000 at any time, for what service life will AE(I) cost be a minimum? Answer: 7 years

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