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Angstrom Technologies intends for the company to use the newest and finest equipment in its labs. Accordingly, the senior engineer has recommended that a 2-year-old

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Angstrom Technologies intends for the company to use the newest and finest equipment in its labs. Accordingly, the senior engineer has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. This engineer believes it can be shown that the proposed equipment is economically advantageous at a 15% per year return and a planning horizon of 5 years. (a) Perform the replacement analysis for a 5-year study period using the estimates below. (v) 10 uic uevision tne same as in part (a) it a 15 year period is used for the replacement analysis? What is the inherent assumption of this analysis for the defender when a 15 year study period is used? 2. Reread the above problem. The president believes he can negotiate a much better purchase price than the quoted amount of $40,000 for the proposed equipment. How much does the president have to negotiate down to economically justify the proposed measurement equipment? Use a 5year study period. Angstrom Technologies intends for the company to use the newest and finest equipment in its labs. Accordingly, the senior engineer has recommended that a 2-year-old piece of precision measurement equipment be replaced immediately. This engineer believes it can be shown that the proposed equipment is economically advantageous at a 15% per year return and a planning horizon of 5 years. (a) Perform the replacement analysis for a 5-year study period using the estimates below. (v) 10 uic uevision tne same as in part (a) it a 15 year period is used for the replacement analysis? What is the inherent assumption of this analysis for the defender when a 15 year study period is used? 2. Reread the above problem. The president believes he can negotiate a much better purchase price than the quoted amount of $40,000 for the proposed equipment. How much does the president have to negotiate down to economically justify the proposed measurement equipment? Use a 5year study period

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