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Farmer Ned is trying to decide whether he should rebuild the engine on his current combine or whether he should invest in a new combine

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Farmer Ned is trying to decide whether he should rebuild the engine on his current combine or whether he should invest in a new combine to harvest crops for the next 10 years. If Ned rebuilds his combine, it will cost $35.000 to do so and will cost $6,800 per year to operate and maintain. At the end of 10 years, the rebuilt combine will have a negligible salvage value. If Ned purchases a new combine, he would trade in his current combine for $85,000. He estimates a new combine would cost $340,000 and would cost $1,400 per year to maintain. At the end of 10 years, this combine would have a trade in value of $168,000. Assume Ned's MARR IS 5%. Compute the EUAC for each alternative using the opportunity cost approach. Click here to access the TVM Factor Table Calculator, EUAC[rebuild): $ EUAC(buy): Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is +5. Which alternative would you recommend for Farmer Ned? Rebuild the engine on his current combine Either alternative ishine Trade in his current combine for a new combine

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