Using Microsoft Excel.

with the following changes.

Purchase machine for $480,000

Life of 20 years

Salvage value at end of the term is 8% of the initial cost

Operating costs at $15,000 for the first year and increasing by 2% each year

Interest rate of 12% per year compounded annually

Exercise 6.4: Ajax Corporation would like to purchase a machine for $375,000 with a life of 10 years. They with a lte of 10 years. Ihey estimate the salvage value to be 6% of the initial machine cost. If other operating costs are estimated to be $32.500 for the first year and increasing by 10% each year, what are the capital recovery cost and the equivalent uniform annual cost (EUAC) for total costs? The interest rate the company uses to justify their investments is o per year compounded yearly