A machine will cost $30,000 to purchase. Annual operating and maintenance cost will be $2,000 and the machine will save $10,000 per year in labor costs. The salvage value of the machine after 5 years will be $7,000. Calculate the machine's equivalent uniform annual worth (EUAW) for an interest rate of 10%.

A machine will cost $30,000 to purchase. Annual operating and maintenance cost will be $2,000 and the machine will save $10,000 per year in labor costs. The salvage value of the machine after 5 years will be $7,000. Calculate the machine's equivalent uniform annual worth (EUAW) for an interest rate of 10%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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