A new $40,000 bottling machine has just beeninstalled in a

Chapter , Problem 13-36

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A new $40,000 bottling machine has just beeninstalled in a plant. It will have no salvage valuewhen it is removed. The plant manager has askedyou to estimate the machineseconomicservice life,ignoring income taxes. He estimates that the annualmaintenancecost will be constantat $2500per year.What service life will result in the lowest equivalentuniform annual cost?

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