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A CNC machine has an initial cost of $38,000. It is expected that its market value...

A CNC machine has an initial cost of $38,000. It is expected that its market value will be
lower by $3000 every year. The net annual revenue is estimated as $6000 in the first year, but
it is also expected to increase by $750 every year. The equipment will have a maximum useful
life of 5 years. The company's MARR is 8% per year. When is the best time to abandon the
equipment? Explain your answer showing all of your calculations.

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