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 ? $ ______