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A company purchased an equipment 4 years ago for $500,000. The equipment's value is deprecating $50,000 every year and it has a total lifetime of

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A company purchased an equipment 4 years ago for $500,000. The equipment's value is deprecating $50,000 every year and it has a total lifetime of 10 years. The annual operating costs are $80,000. There is a new machine that can replace this equipment. The new machine will cost $700,000 and the company can get $200,000 as trade-in for the current equipment. The annual costs will become $30,000. The new machine can last 7 years, its value depreciates $100,000 every year. Perform a replacement study to decide which equipment should be chosen at i = 10%. Compound Interest Factors Uniform Payment Series Arithmet Gradient Compound Sinking Capital Compound Present Gradient Uniform Worth Given Gradient Present Fund Factor Find A Given F AF Find Recovery Factor Find Glen AP 1.1000 5742 1021 3155 Worth Factor Find Given PIA 0.900 Series Find A Given A/G 0 0476 PVG 1 2155 2457 3170 4378 Amount Factor Pd Given A RA 1000 2.100 1110 4.641 6105 7.716 9.49 14 13.579 15917 18331 2014 34523 27.975 31772 6 7 Single Payment Present Am Worth Factor Factor Find Find P Given P Given FP PF 1100 1210 256 101 7513 145 1611 1772 5645 5132 2144 05 28 2294 155 2253 3505 318 2452 3897 1797 3611 2794 4595 2176 5.054 .1973 5560 1799 6116 1615 1456 7.00 1351 10 3954 1117 9.50 1015 10 15 09 129 1054 0874 0736 4155 46 S25 5.799 131 1810 2234 2022 100 172 1725 4054 96 12.763 16.099 19421 22291 3 11 12 13 14 15 16 17 15 19 0540 0408 0157 0315 0273 0347 0219 093 0175 DIS 0140 0126 0113 3054 1874 1736 167 1520 146 10 1357 1315 1278 1247 1219 1195 1175 1155 1130 6095 6514 7.100 717 7 7.34 2022 201 4699 4. 5279 559 SO 6053 63 10 11 12 13 14 15 16 17 2001 Un MO 20152 43416 USB 19.640 5251 SS 207 SK110 60689 611 6541 67 19 10545 45.599 51.159 $7275 63.00 71.000 79543 197 981 14 UNE 3514 8609 8722 R ROS 9077 22 6719 6919 7.103 72 745 DIG 1113 1109 24 25

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