A hospital in The Upper Cumberland area bought a diagnostic machine at a cost of $40,000. Maintenance cost is expected to remain constant throughout the life of this machine at $2,000 per year. The salvage value is estimated to be "0" at the end of the useful life of 10 years. Determine the economic life of this machine (to closest whole number of years). MARR = 10%
Suggestion: Calculate the EUAC for each of the 10 years (hint: part of it has an A/P).
Answer:
Reasoning/Work: