A commercial 3D printer is purchased for $340,000. The salvage value of the printer decreases by 50% each year that it is held. The cost to operate and maintain the machine the first year it is used is $13,000; these costs increase by $6,000 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 15% is used? Click here to access the TVM Factor Table Calculator. ORI: EUAC: $ years

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
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A commercial 3D printer is purchased for $340,000. The salvage value of the printer decreases by 50% each year that it is held. The
cost to operate and maintain the machine the first year it is used is $13,000; these costs increase by $6,000 each year. What is the
optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 15% is used?
Click here to access the TVM Factor Table Calculator.
ORI:
EUAC*: $
years
Transcribed Image Text:A commercial 3D printer is purchased for $340,000. The salvage value of the printer decreases by 50% each year that it is held. The cost to operate and maintain the machine the first year it is used is $13,000; these costs increase by $6,000 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 15% is used? Click here to access the TVM Factor Table Calculator. ORI: EUAC*: $ years
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