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a- The minimum EUAC value of the challenger is $_____ b- The marginal cost of keeping the defender in service for one more year is
a- The minimum EUAC value of the challenger is $_____
b- The marginal cost of keeping the defender in service for one more year is $______
c-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 $26,000 and replaced by a newer model having a purchase price of $39,000; 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 12%, when should the old assembly machine be replaced? Use the following data table for your analysis. Year Challenger Market Value O&M Costs $39,000 31,000 $9,000 26,000 12,000 Defender Market Value O&M Costs $26,000 18,500 $14,000 0 1 2Step by Step Solution
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