Question

A new piece of production machinery has the following costs: Investment cost = $25,000. Annual operating...

A new piece of production machinery has the following costs: Investment cost = $25,000. Annual operating and maintenance cost = $2000 in year 1 and then increasing by $500 per year Annual cost for risk of breakdown = $5000 per year for 3 years, then increasing by $1500 per year Useful life = 7 years MARR = 15% Market Value: EOY MV 1 $18,000 2 $13,000 3 $ 9,000 4 $ 6,000 5 $ 4,000 6 $ 3,000 7 $ 2,500 For year = 4,

calculate the loss in market value [v], cost of capital [w], O&M cost [x], Breakdown risk cost [y], and total marginal cost [z].

------------------------------ please solve step by step below are the answers

Answers Answer for: v 3000

Specified Answer for: w 1350

Answer for: x 3500

Answer for: y 6500

Answer for: z 14350

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