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A special-purpose machine is to be purchased at a cost of $30,000.

The following table shows the expected annual operating and maintenance cost and the salvage value for each year of service. MARR=12%

Year of Service

O&M Cost

Market Value

1

$5,000

$25,800

2

$6,500

$16,000

3

$10,000

$10,000

4

$12,500

$5,000

5

$14,800

$0

What is the minimum AEC(i) for this machine? $______

What is the PW(12%) of (jo, 2)_infinity ? $ ______

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92827177

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