ANSWER ALL THE QUESTIONS AND WORKOUT THE PROBLEMS STEP BY STEPS DETAIL.

4. Four years ago a company purchased a new copy machine. Due to deterioration, soon a new copy machine will be needed. The annual maintenance cost for the existing machine is $1,600 and increasing 100 each year. An identical copy machine can be purchased now to replace the presently owned assets. The presently owned copy machine losses each year $10,000 in resale value. Compare the assets with at 10% per year and compute if the presently owed should be replace. Same model as presently owned Present value (when new) Present value of new copy machine Annual cost (old copy machine) Annual cost (new copy machine) Salvage value (both machine) Life in years (both machine) $75,000 $85,000 1,100 1,600 and increasing 15,000 6 4. Four years ago a company purchased a new copy machine. Due to deterioration, soon a new copy machine will be needed. The annual maintenance cost for the existing machine is $1,600 and increasing 100 each year. An identical copy machine can be purchased now to replace the presently owned assets. The presently owned copy machine losses each year $10,000 in resale value. Compare the assets with at 10% per year and compute if the presently owed should be replace. Same model as presently owned Present value (when new) Present value of new copy machine Annual cost (old copy machine) Annual cost (new copy machine) Salvage value (both machine) Life in years (both machine) $75,000 $85,000 1,100 1,600 and increasing 15,000 6