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A specialty concrete mixer used in construction was purchased for $320,000 seven years ago. Its annual operating and maintenance costs are $85,000. At the end
A specialty concrete mixer used in construction was purchased for $320,000 seven years ago. Its annual operating and maintenance costs are $85,000. At the end of the B-year planning horizon, the mixer will have a salvage value of $7 DIO if the mixer is replaced a new mixer will require an initial investment of S390 000. At the end of the 8-year planning horizon will have a salvage value of $45,000 its annual operating and maintenance cost will be only $40,000 due to newer technology The current market value of the existing moxer is $95.000. Assuming a MARR of 10%, answer the following questions (a) and (b) (a) Using the outsider viewpoint, what is the first cost of keeping the old mixer? O A $65,000 OB. $85,000 OC. $95.000 OD. $75,000 (b) Using the insider viewpoint what will be the closest EUAC for the challenger? O A $93,224 OB. $91,350 OC. $96.972 OD. $95098
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