Problem
Your firm is in need of a machine that costs $5000. During the first year the maintenance costs are estimated to be $400. The maintenance costs are expected to increase by $150 each year up to a total of $1750 at the end of Year 10. The machine can be depreciated over 5 years using the straightline method. Assume each year's depreciation is a known amount Dy . There is no salvage value. Develop an expression to show how you would find the most economical useful life of this machine on a before-tax basis.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.