Q2. A machine has an initial purchase cost of $100,000, an annual operation and maintenance cost of $2,000, a life of 10 years, and a salvage value of $20,000. At the end of years 4 and 8, it requires...

Extracted text: Q2. A machine has an initial purchase cost of $100,000, an annual operation and maintenance cost of $2,000, a life of 10 years, and a salvage value of $20,000. At the end of years 4 and 8, it requires a major service (overhaul), which costs $20,000 and $15,000 respectively. What is the present equivalent cost of owning and operating this machine if the interest rate is 10% per year?