A company has decided to replace its inspection machine with an
advanced one. The advanced machine costs $15,000. Use the
information given in the following table and assume a MARR of 9%
and the machine’s service life of 4 years to determine the economic
life of the new machine
j S.V. Operating Costs
1 $6,000 $3,600
2 $5,400 $5,600
3 $4,860 $7,600
4 $4,374 $9,600