A $40,000 machine will be purchased by a company whose interest rate is 12%. The installation cost..

A $40,000 machine will be purchased by a company whose interest rate is 12%. The installation cost is $5K, and 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.