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1. Mary O'Leary's company ships fine wool garments from County Cork, Ireland. Five years ago she purchased some new automated packing equipment having a first
1. Mary O'Leary's company ships fine wool garments from County Cork, Ireland. Five years ago she purchased some new automated packing equipment having a first cost of $125,000. The annual costs for operating, maintenance, and insurance, as well as market value data for each year of the equipment's 10-year useful life are as follows. Now Mary is looking at the remaining 5 years of her investment in this equipment. Using a MARR of 25%, what is the marginal cost for each of the remaining 5 years? When if at all, should Mary replace this packing equipment with a new asset that has a minimum EUC of $110,000? (13-35) Year Operating $16,000 20.000 24,000 28,000 32,000 36,000 40,000 44,000 48,000 52,000 Annual Costs | Maintenance $ 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Insurance $17,000 16,000 15,000 14,000 12,000 11,000 10,000 10,000 10,000 10,000 Market Value $80,000 78,000 76,000 74,000 72,000 70,000 68.000 66,000 64,000 62,000 1. Mary O'Leary's company ships fine wool garments from County Cork, Ireland. Five years ago she purchased some new automated packing equipment having a first cost of $125,000. The annual costs for operating, maintenance, and insurance, as well as market value data for each year of the equipment's 10-year useful life are as follows. Now Mary is looking at the remaining 5 years of her investment in this equipment. Using a MARR of 25%, what is the marginal cost for each of the remaining 5 years? When if at all, should Mary replace this packing equipment with a new asset that has a minimum EUC of $110,000? (13-35) Year Operating $16,000 20.000 24,000 28,000 32,000 36,000 40,000 44,000 48,000 52,000 Annual Costs | Maintenance $ 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Insurance $17,000 16,000 15,000 14,000 12,000 11,000 10,000 10,000 10,000 10,000 Market Value $80,000 78,000 76,000 74,000 72,000 70,000 68.000 66,000 64,000 62,000
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