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1 5 1 | 4 A machine purchased 10 years ago for $65.000 can be used for 4 more years. Estimates are an annual operating
1 5 1 | 4 A machine purchased 10 years ago for $65.000 can be used for 4 more years. Estimates are an annual operating cost of $53,000 and a salvage value of $15,000. A challenger will cost $120,000 with ESL of 5 years and an operating cost of $22,000 per year. Its salvage value will be $35,000. On the basis of these estimates, what is the approximate Replacement Value "RV"? Use an interest rate of 10% per year. S5000 S3000 $9000 $7000
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