Result in the lowest equivalent uniform annual cost

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A new $40,000 bottling machine has just been installed in a plant. It will have no salvage value when it is removed. The plant manager has asked you to estimate the machine's economic service life, ignoring income taxes. He estimates that the annual maintenance cost will be constant at $2500 per year. What service life will result in the lowest equivalent uniform annual cost?

Reference no: EM131810537

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