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A company is considering replacing a broken inspection machine, which has been used to test the mechanical strength of electrical insulators, with a newer and
A company is considering replacing a broken inspection machine, which has been used to test the mechanical strength of electrical insulators, with a newer and more efficient one. The company uses an internal rate of return of 9%. The conditions for the replacement analysis are summarized in the following tables. Fill in the missing blanks. Old Machine Repair Salvage n O&M CR(9%) OC(9%) AEC(9%) Value Value 0 $1,200 $5,000 1 $4,000 $2,000 $2,758 $2,000 $4,758 2 $3,000 $3,500 $2,718 $4,807 3 $2,000 $5,000 $3,414 $5,253 4 $1,000 $6,500 $1,695 $4,089 $5,784
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