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A company is considering replacing a machine that was bought six years ago for $45,000. The machine, however, can be repaired and its life extended
A company is considering replacing a machine that was bought six years ago for $45,000. The machine, however, can be repaired and its life extended five more years. If the current machine is replaced, the new machine will cost $43,000 and will reduce the operating expenses by $5,500 per year. The seller of the new machine has offered a trade-in allowance of $15,000 for the old machine. If MARR is 8% per year before taxes, how much can the company spend to repair the existing machine? 5 Click the icon to view the interest and annuity table for discrete compounding when MARR = 8% per year. Choose the closest answer below. O A. $500 O B. $6,040 OC. $21,040 O D. $49,960
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