A machine has a first cost of 10000 its market value, Financial Management

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A machine has a first cost of 10000 its market value

A machine has a first cost of $10,000. Its market value declines by 20% annually from its previous year's market value. The repair costs are covered by the warranty in Year 1, and then they increase $600 per year. The firm's MARR is 15%.

a) Find the minimum EUAC for this machine.

b) What is the economic life of the machine?

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Financial Management: A machine has a first cost of 10000 its market value

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