Machine Replacement Decision Assignment | Homework For You
The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $35,000 for installation and will have an estimated economic life of 11 years and a $2,000 MV at that time. It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,500 and a present MV of $5000. Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now.
Year MV at End of BV at End of Expenses during Year Year the Year $4,000 $4,875 $20,000 3,750 3,250 24,000 3,500 1.625 28,000 Click the icon to view the interest and annuity table for discrete compounding when i = 15% per year. خا ن کی
Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year 1 2 3 EUAC $ 19359 $46674 [83174 Enter your answer in the edit fields and then click Check Answer. Get Finance homework help today