ABY company purchased a new CNC machine for $100,000. The market value of the new machine in each year is given in the table below. Annual operating and maintenance costs will be $30.000 per year. MARR is 12% per year. a) Calculate the marginal cost of the new CNC machine in years I to 4. b) Determine the economic life of new CNC machine.

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4. ABY company purchased a new CNC machine for $100,000. The market value of the new machine in each year is given in the table below. Annual operating and maintenance costs will be $30.000 per year. MARR is 12% per year. a) Calculate the marginal cost of the new CNC machine in years I to 4. b) Determine the economic life of new CNC machine.
Year 1
Year 2
Year 3
Year 4
O&M costs
30,000
30,000
30,000
30,000
Market value
80,000
65,000
60,000
50,000
Transcribed Image Text:Year 1 Year 2 Year 3 Year 4 O&M costs 30,000 30,000 30,000 30,000 Market value 80,000 65,000 60,000 50,000
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