Case Study 13 a CNC Machining Center Was Purchased 6 Years Ago for Years

Multiple Choice

Case Study 13
A CNC machining center was purchased 6 years ago for $100,000. The current market value is $200,000, which will decline as follows over the next 5 years: $140,000, $130,000, $120,000, $100,000, and $80,000. The O & M costs are estimated to be $36,000 this year. These costs are expected to increase by $5,000 per year starting year 2. MARR = 10%
-The marginal cost for defender in year 2 is ____________.

A) $68,000
B) $65,000
C) $ 66,000
D) $56,000