Question 13.3: A machine costs $18,000 to buy and install. Its operating an...

Engineering Economic Analysis

A machine costs $18,000 to buy and install. Its operating and maintenance (O&M) costs start at $900 per year and then climb $500 per year. Its selling price if sold used is $5000 at the end of year 1 and then it declines 10% per year. If the machine is to be used more than 5 years, an overhaul costing $3000 is needed at the end of year 5. The machine’s useful life is 10 years and interest is 8%. Use a spreadsheet to compute the machinery’s economic life that minimizes the EUAC.

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Question: 13.7

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Question: 13.4

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Question: 13.6

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