A commercial 3D printer is purchased for $350,000. The salvage value of the printer decreases by 30% each year that it is held. The cost to operate and maintain the machine the first year it is used is $14,000; these costs increase by $5,000 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 13% is used? Click here to access the TVM Factor Table Calculator. years ORI: EUAC*: $ Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5 for the EUAC*.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
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A commercial 3D printer is purchased for $350,000. The salvage value of the printer decreases by 30% each year that it is held. The
cost to operate and maintain the machine the first year it is used is $14,000; these costs increase by $5,000 each year. What is the
optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 13% is used?
Click here to access the TVM Factor Table Calculator.
years
ORI:
EUAC*: $
Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5 for
the EUAC*.
Transcribed Image Text:A commercial 3D printer is purchased for $350,000. The salvage value of the printer decreases by 30% each year that it is held. The cost to operate and maintain the machine the first year it is used is $14,000; these costs increase by $5,000 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 13% is used? Click here to access the TVM Factor Table Calculator. years ORI: EUAC*: $ Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5 for the EUAC*.
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