A machine tool which has been used in a plant for 10 years


A machine tool , which has been used in a plant for 10 years, is being considered for replacement. It cost $10,000 and was depreciated by MACRS depreciation using a 5-year recovery period. An equipment dealer indicates that the machine has no resale value. Maintenance on the machine tool has been a problem, with a $1000 cost this year. Future annueal maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: A machine tool which has been used in a plant for 10 years
Reference No:- TGS0997058

Expected delivery within 24 Hours