A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $24,000 and replaced by a newer model having a purchase price of $41,500, or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the following data table for your analysis. Chaleoger De lender Methel Volu $24,000 Marka Volue $41,500 30.000 24,000 Yast ORM Cost $14,000 58.000 12,000 17.500 2 A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year. The minimum EUAC value of the challenger is S (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is S(Round to the nearest dollar.) The old assembly machine should be replaced immediately in one year
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $24,000 and replaced by a newer model having a purchase price of $41,500, or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the following data table for your analysis. Chaleoger De lender Methel Volu $24,000 Marka Volue $41,500 30.000 24,000 Yast ORM Cost $14,000 58.000 12,000 17.500 2 A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year. The minimum EUAC value of the challenger is S (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is S(Round to the nearest dollar.) The old assembly machine should be replaced immediately in one year
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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