Question: Please solve 7.12 (using 7.8 above) 8 A machine costs $40000 to purchase and $10000 per year to operate. The machine has no salvage value,

Please solve 7.12 (using 7.8 above) 8 A machine costs $40000 topurchase and $10000 per year to operate. The machine has no salvage

Please solve 7.12 (using 7.8 above)

8 A machine costs $40000 to purchase and $10000 per year to operate. The machine has no salvage value, and a 10 -year life. If i=10% per year, compounded annually, what is the equivalent uniform annual cost of the machine? The EUAC is given by (7.4) or (7.5), with costs counted as positive, together with the fixed operating cost. EUAC=$40000(A/P,10%,10)+$10000=$40000(0.16275)+$10000=$16510 7.12 Find the present worth of the machine of Problem 7.8. Ans. PW=$101443.93 (the negative value indicates a cash outflow or cost)

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