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A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $25,000 and replaced by
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $25,000 and replaced by a newer model having a purchase price of $44,000; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 15%, when should the old assembly machine be replaced? Use the following data table for your analysis. Year Challenger Market Value O&M Costs $44,000 32,000 $10,500 25,000 12,500 Defender Market Value O&M Costs $25,000 16,500 $13,500 O The minimum EUAC value of the challenger is $ (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is $ (Round to the nearest dollar.) The old assembly machine should be replaced A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $25,000 and replaced by a newer model having a purchase price of $44,000; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 15%, when should the old assembly machine be replaced? Use the following data table for your analysis. Year Challenger Market Value O&M Costs $44,000 32,000 $10,500 25,000 12,500 Defender Market Value O&M Costs $25,000 16,500 $13,500 O The minimum EUAC value of the challenger is $ (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is $ (Round to the nearest dollar.) The old assembly machine should be replaced
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