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eed Runner Company has acquired huge machinery at a cost of $ 150,000 (with no breakdown of the component parts ). The estimated useful life
eed Runner Company has acquired huge machinery at a cost of $ 150,000 (with no breakdown of the component parts ). The estimated useful life is 8 years. At the end of the fifth year, the main engine requires replacement , the remainder of the machinery is perfectly roadworthy and is expected to last for the next three years. The cost of a new engine is $85,000 with discounted amount of $74,700 (discounted back seven .years with rate 6% ) Required : Compute the cost of the
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