Calculate the equivalent annual operating cost of machine

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The operating cost of a new machine is $500 for the first year. Starting the second year, the operating cost increases by $200 per year for the next 10 years. Calculate the equivalent annual operating cost of the machine. What will be the present and future value of the operating costs over the 11 year period? Assume the market interest rate of 8.5%. SHOW WORK.

Reference no: EM13721506

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