Question $1$

Question Value: $25$

A new bottle$-$capping machine costs $68,000,$ including $9,000$ 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 maintenace costs are expected to be $4,000$ for the first year, increasing by $1,500$ each year thereafter. Interest is $12\%.$

Construct a spreadsheet that has the following headings: Year, Salvage Value, Maintenance Costs, EAC $($Capital Costs$),$ EAC $($Operating Costs$),$ and EAC $($Total Costs$).$ Compute the EAC $($Total Costs$)$ if the bottle capper is kept for $n$ years, $n=1,$dots,$8.$

What is the economic life of the bottle capper $($in years$)?$

$[3/25]$

Complete the row of the table indicating the economic life for this project

NOTE: Use $5$ significant figures in your calculations, and round your answers for the table below to the nearest dollar.

$\backslash$table$[[,,,$EAC,EAC,EAC$],[$Year$,$Salvage,Maintenance,Capital,Maintenance,Total$],[$Number$,$Number,Number,Number,Number,Number$],[\frac{3}{25},\frac{3}{25},[4/25],[5/25],[5/25],[2/25]]]$

$($Please note that you may retry this assignment up to $5$ times. You will have to click "Submit Assignment" after each attempt of the entire