A factory manager bought a rare machine for $10 million. of the machine The sales value at the end of the first year will be $3 million and the machine will be sold by antique dealers. It is estimated to be valued at $500,000 due to the Initial cost of maintenance It is expected to be $300,000 in 3 years and double each year thereafter. In this way, 4 The maintenance cost of the third year is $600,000, the maintenance cost of the 5th year is $1,200,000, etc. will be Calculate the economic life of this machine based on the 15% MCVO. a) 7 В) 3 C) 12 D) 6 E) 9

A factory manager bought a rare machine for $10 million. of the machine The sales value at the end of the first year will be $3 million and the machine will be sold by antique dealers. It is estimated to be valued at $500,000 due to the Initial cost of maintenance It is expected to be $300,000 in 3 years and double each year thereafter. In this way, 4 The maintenance cost of the third year is $600,000, the maintenance cost of the 5th year is $1,200,000, etc. will be Calculate the economic life of this machine based on the 15% MCVO. a) 7 В) 3 C) 12 D) 6 E) 9

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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