Q. Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years? (Solved)

1. 12000

2. 9000

3. 10000

4. 11000

  • c. 10000
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