in problem 138 what is the marginal cost for each year Do no

in problem 13-8 what is the marginal cost for each year? (Do not need the actual answer for problem 13-8. Just the marginal costs for each year)

13-8 A $25,000 machine that has been used for one year has a salvage value of $16,000 now, which will drop by $4000 per year. The maintenance costs for the next 4 years are $1250, $1450, $1750, and $2250. When the machine is sold, it will cost $2000 to remove and sell. When the machine was purchased, the estimated salvage value in 5 years was $3500. What are the relevant costs for the machine?

(i) $ 25000 is already incurred and is a sunk cost therefore irrelevant.

(ii) Salvage value of Machine is a opportuinity cost ; If we stop using the machine salvage value will be received - Relevant cost.

(iii) Maintainance costs are annual costs of operating machine and are directly related to machine - Therefore relevant.

(iv) Cost to be incurred at the time of sale of machine is also relevant, as it is a fixed future expense ; we have to pay 2000 whenever we remove the machine. - Re;evant.

(v) Estimated salvage value is to be reduced from the cost of machine as it is the recovery of machine cost - Relevant.

in problem 13-8 what is the marginal cost for each year? (Do not need the actual answer for problem 13-8. Just the marginal costs for each year) 13-8 A $25,000

in problem 138 what is the marginal cost for each year Do no

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