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A laser welding setup cost $60k to purchase and $100k to install 10 years ago. The market value today is $31,829k and will decline by
A laser welding setup cost $60k to purchase and $100k to install 10 years ago. The market value today is $31,829k and will decline by 12% of the current value each year for the the next 5 years. Operating and maintenance costs are estimated to be $3,109.92k this year and are expected to increase by $500 per year. Your MARR in this case is 10%. a) If you are looking at replacing this laser welding setup over the next five years, what EUAC would you the new setup need to have to justify replacement? b) If the EUAC for a new laser welder is $10,500 for a 10 year life, should you replace the current setup in the next five years, and if so when? Answer both of these in the dropbox, enter "1" below
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