Problem
E&J Fine Wines recently purchased a new grape press for $120,000. The annual operating and maintenance costs for the press are estimated to be $5000 the first year. These costs are expected to increase by $2000 each year after the first. The salvage value is expected to decrease by $20,000 each year to a value of zero. Using an interest rate of 8%, determine the economic life of the press.
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.