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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 $27,000 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 $27,000 and replaced by a newer model having a purchase price of $42,500; 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%, w should the old assembly machine be replaced? U the hen see following data table for your analysis. Challenger Defender Year Market Value O&M Costs Market Value O&M Costs $27,000 $42,500 18,500 $10,000 $15,000 34.000 27,000 12,500 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year
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