What is its economic life

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Reference no: EM132165640

Question - A $20,000 machine will be purchased by a company whose interest rate is 10%. It will cost $5000 to install, but its removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows:

Year	1	2	3	4	5
$	$16K	13K	11 K	10K	9.5K
O&M	$5K	8K	11K	14K	17K

Reference no: EM132165640

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