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A present asset (defender) has a current market value of $81,000 (year 0 dollars). Estimated market values at the end of the next three years,

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A present asset (defender) has a current market value of $81,000 (year 0 dollars). Estimated market values at the end of the next three years, expressed in year 0 dollars, are MV, - $74,000, MV,=560,000, MV, = $39,000. The annual expenses (expressed in year 0 dollars) are $15,000 and are expected to increase at 4.9% per year. The before tax nominal MARR is 13% per year. The best challenger has an economic life of 5 years and its associated EUAC is $33,180 Market values are expected to increase at the rate of inflation which is 3% per year Based on this information and a before tax analysis, what are the marginal costs of the defender each year and when should you plan to replace the defender with the challenger? Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. Fil the table below. (Round to the nearest dollar.) Year 1 EUAC through Year k Marginal Costs of the Defender $ 2 S S 3 S The replacement should be made after 2 years after 3 years after 1 year Enter your answer in each of the answer boxes ? N 1 2. 3 4 5 6 7 8 9 10 Discrete Compounding; i = 13% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Finch To Find P To Find A Given P Given Given A Given A Given F FIP PIA AJF 1.1300 0.8850 1.0000 0.8850 1.0000 1.2769 0.7831 2.1300 1.6681 0.4695 1.4429 0.6931 3.4069 2.3612 0.2935 1.6305 0.6133 4.8498 2.9745 0.2062 1.8424 0.5428 6.4803 3.5172 0.1543 2.0820 0.4803 8.3227 3.9975 0.1202 2.3526 0.4251 10.4047 4.4226 0.0961 2.6584 0.3762 12.7573 4.7988 0.0784 3.0040 0.3329 15.4157 5.1317 010649 3.3946 0.2946 18.4197 5.4262 0.0543 Capital Recovery Factor To Find A Given P AP 1.1300 0.5995 0.4235 0.3362 0.2843 0.2502 0.2261 0.2084 0.1949 0.1843 A present asset (defender) has a current market value of $81,000 (year 0 dollars). Estimated market values at the end of the next three years, expressed in year 0 dollars, are MV, - $74,000, MV,=560,000, MV, = $39,000. The annual expenses (expressed in year 0 dollars) are $15,000 and are expected to increase at 4.9% per year. The before tax nominal MARR is 13% per year. The best challenger has an economic life of 5 years and its associated EUAC is $33,180 Market values are expected to increase at the rate of inflation which is 3% per year Based on this information and a before tax analysis, what are the marginal costs of the defender each year and when should you plan to replace the defender with the challenger? Click the icon to view the interest and annuity table for discrete compounding when MARR = 13% per year. Fil the table below. (Round to the nearest dollar.) Year 1 EUAC through Year k Marginal Costs of the Defender $ 2 S S 3 S The replacement should be made after 2 years after 3 years after 1 year Enter your answer in each of the answer boxes ? N 1 2. 3 4 5 6 7 8 9 10 Discrete Compounding; i = 13% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Finch To Find P To Find A Given P Given Given A Given A Given F FIP PIA AJF 1.1300 0.8850 1.0000 0.8850 1.0000 1.2769 0.7831 2.1300 1.6681 0.4695 1.4429 0.6931 3.4069 2.3612 0.2935 1.6305 0.6133 4.8498 2.9745 0.2062 1.8424 0.5428 6.4803 3.5172 0.1543 2.0820 0.4803 8.3227 3.9975 0.1202 2.3526 0.4251 10.4047 4.4226 0.0961 2.6584 0.3762 12.7573 4.7988 0.0784 3.0040 0.3329 15.4157 5.1317 010649 3.3946 0.2946 18.4197 5.4262 0.0543 Capital Recovery Factor To Find A Given P AP 1.1300 0.5995 0.4235 0.3362 0.2843 0.2502 0.2261 0.2084 0.1949 0.1843

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