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9.30 Clarksville Pottery has long sold a coffee cup style made inhouse using machinery purchased 5 years ago for $110,000. The product line will be

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9.30 Clarksville Pottery has long sold a coffee cup style made inhouse using machinery purchased 5 years ago for $110,000. The product line will be discontinued and the machinery disposed of during the year of the largest estimated AW. Use the following estimates to determine when the machinery should be sold at a MARR of 8% per year. (10 Points) Market value: Current: $32,000 Future: $20,000 next year, decreasing $3000 per year thereafter AOC: $40,000 and increasing at a rate of $2000 per year Revenue: $80,000 and decreasing at a rate of $5000 per year Retention: Maximum of 5 years 9.30 Clarksville Pottery has long sold a coffee cup style made inhouse using machinery purchased 5 years ago for $110,000. The product line will be discontinued and the machinery disposed of during the year of the largest estimated AW. Use the following estimates to determine when the machinery should be sold at a MARR of 8% per year. (10 Points) Market value: Current: $32,000 Future: $20,000 next year, decreasing $3000 per year thereafter AOC: $40,000 and increasing at a rate of $2000 per year Revenue: $80,000 and decreasing at a rate of $5000 per year Retention: Maximum of 5 years

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