Answer these

Nano Technologies intends to use the newest and finest equipment in its labs. Accordingly, a 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 economi- cally advantageous at a 10% per year return and a planning horizon of 3 years. (a) Perform the replacement analysis using the annual worth method for a specified 3-year study period. (bj Determine the challenger's capital recovery amount for the 3-year study period and the expected full life. Comment on the effect made by the 3-year study period. Current Proposed Original purchase price, 5 OD'DE- Current market value, $ 17,DO0 Remaining life, years S 15 wimated value in 3 years, $ 9000 20 00 salvage value atber 15 years, $ 5.000 Annual operating cost, $ per year -8.000 -3,000An engineer with Haliburton calculated the AW values shown for a presently owned machine by using estimates be obtained from the vendor and company records. Retention AW Value. Period, Years 5 per Year -RI, OOD -87,DOD -890OD -95,000 A challenger has an economic service life of 7 years with an AW of $ 86,000 per year. Assume that used machines like the one presently owned will always be available and that the MARR is 12%% per year. If all future costs remain as esti- mated for the analysis, the company should pur- chase the challenger: [a) Now (b) After 2 years [o) After 3 years () Never\f\f\f