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BRT International purchased a machinery on 1 January 2018 for $100,000,000. On 31 December 2023, the accumulated depreciation on the machine was $24,000,000. The useful
BRT International purchased a machinery on 1 January 2018 for $100,000,000. On 31 December 2023, the accumulated depreciation on the machine was $24,000,000. The useful life of the machine was estimated to be 25 years. BRT is considering an upgrade to the current machine to increase its production units. A competitor, NARS Limited has offered to purchase the machine for $75,000,000 if BRT agrees to pay transportation costs of $250,000 and as well as to cover the legal fees associated with the sale amounting to $1,200,000. Once the machine has been sold to NARS, BRT intends to replace the machine at a cost of $115,000,000. The estimated useful life of the new machine is also estimated to be 25 years. If BRT decides to continue using the machine, the cash flows are estimated to be $2,302,000 for the first 3 years followed by $1,987,000 per year for the remaining years of the machine's life. The discount rate is 10% and the discount factor are as follows: Year 1-0.909 Year 2 - 0.826 Year 3 - 0.751 Years 4-19 (inclusive) - 7.61 Calculate the: Historical Cost Net Realisable Vale Net Replacement Cost Economic Value
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