A machine costing 2082 to buy and 300 per year to operate


A machine costing $2,082 to buy and $300 per year to operate will save labour expenses of $650 per year for eight years. If the interest rate is 10 percent, what is the minimum salvage value (after eight years) at which the machine is worth purchasing?

(HINT: use the PW method in your calculation).

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Microeconomics: A machine costing 2082 to buy and 300 per year to operate
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