Question

A machine was purchased one year ago. Presently, the market value is $16,000 and it declines by $3,000 every year. For the next 3 years, the maintenance costs are as follows:

Year

1

2

3

Maintenance costs

$890

$1,290

$1,690

What is the marginal cost of extending the service for the 3rd year?

A. $2,690

B. $5,490

C. $4,690

D. $5,690

Answer 1

Answer:

A machine was purchased one year ago. Presently, the market value is $ 16,000 and it declines by $3,000 every year. For the next 3 years, the maintenance costs are as follows: Year Maintenance costs 1 $890 2 $1,290 3 $1,690 What is the marginal cost of extending the service for the 3rd year? A. $2,690 B. $5,490 C. $4,690 D. $5,690