A=1.180.000$ B=6.200.000$ C=580.000$ D=940.000$

An existing excavator of a construction company can be used for 6 more years with a yearly maintenance cost of A Another option is to buy a new excavator, which can do the same work. The purchase price of the new excavator is B and it can be used for 10 years. The yearly maintenance cost of the new excavator is C Both excavators will have the salvage value of at the end of their useful lives. What should be the minimum market price of the existing excavator today so that the replacement decision can be taken? Use the comparative use value method with the annual equivalence approach. The interest rate is given as 14% per year. A, B, C, and D numbers are given