# A $20,000 machine will be purchased by a company whose interest rate is 10%. It will cost $5000 to..

A $20,000 machine will be purchased by a company whose interest rate is 10%. It will cost $5000 to install, but its removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows: (a) Use the tabulated factors. (b) Use a spread sheet like Exbibit 10.3. (Answer: 3 years)