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calculate annual worth of the presently owned machine if it is kept for 2 more years? 5 more years? A machine that cost $120,000 three

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calculate annual worth of the presently owned machine if it is kept for 2 more years? 5 more years?

A machine that cost $120,000 three years ago can be sold now for $54,000. Its market value for the next 2 years is expected to be $40,000 and $20,000 one year and two years from now, respectively. Its operating cost is expected to be $23,000 for the next 2 years. A new improved machine that can be purchased for $138,000 will have an economic life of 5 years, an operating cost of $9,000 per year, and a salvage value of $32,000 after 5 years. Assume an interest rate of 10% per year. Question 15 (6 points) Calculate the AW of the presently owned machine if it is kept for 1 more year

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