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Business, 19.04.2021 15:40 leianagaming

Toshiba Inc. is considering replacing a machine. These are the data for both the used and new machine. Used machine: the machine was purchased for $16,050 two years ago, the current salvage value is $11,732 and is expected to have a scrap value of $6,171 whenever it is retired. This used machine still has 4 years left of service. From now on, the operating and Maintenance costs are $2,066 for the first year and expected to increase by $1,864 thereafter. New Machine: machine costs $13,569 and is expected to have a scrap value of $7,228 whenever it is retired. Operating and Maintenance costs are $1,560 for the first year and expected to increase by $1,426 thereafter. The service life of this machine is 4 years. If the MARR is 9%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine that offers the lowest EUAC. Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas.

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Toshiba Inc. is considering replacing a machine. These are the data for both the used and new machin...
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