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Aj has a piece of test equipment that it is considering replacing. The instrument has a current salvage value of $50,000. The existing test equipment
Aj has a piece of test equipment that it is considering replacing. The instrument has a current salvage value of $50,000. The existing test equipment is expected to have a salvage value of $40,000 in one year. The cost of lower productivity of the existing test equipment is now $30,000. A new test system has a first cost of $120,000 and has the following salvage values and loss of productivity for each of the next four years. Aj MARR is 15%. What is the cost advantage of the best test system.
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