2) Your company purchases a new CNC machine for $100,000 today (beginning Year O). In 8 years it wil have a salvage value of $29,000, and it produces 8,000 parts per year. The machine will require O & M costs of $41,000 every year. If i = 12% annual rate compounded annually, what is the total cost per part
2) Your company purchases a new CNC machine for $100,000 today (beginning Year O). In 8 years it wil have a salvage value of $29,000, and it produces 8,000 parts per year. The machine will require O & M costs of $41,000 every year. If i = 12% annual rate compounded annually, what is the total cost per part
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2) Your company purchases a new CNC machine for $100,000 today (beginning Year 0). In 8 years it will
have a salvage value of $29,000, and it produces 8,000 parts per year. The machine will require O & M
costs of $41,000 every year. If i = 12% annual rate compounded annually, what is the total cost per part?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ed8a88d-9c02-4816-9d19-e11c1bcb39dc%2Fa64d4e5a-5d11-475a-bc7d-86fab6473e9f%2F8wkm9yk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2) Your company purchases a new CNC machine for $100,000 today (beginning Year 0). In 8 years it will
have a salvage value of $29,000, and it produces 8,000 parts per year. The machine will require O & M
costs of $41,000 every year. If i = 12% annual rate compounded annually, what is the total cost per part?
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