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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 12 years. If Ned rebuilds his combine, it will cost $37.000 to do so and will cost $8,000 per year to operate and maintain. At the end of 12 years, the rebuilt combine will have a negligible salvage value. If Ned purchases a new combine, he would trade in his current combine for $73,000. He estimates a new combine would cost $300,000 and would cost $1,550 per year to maintain. At the end of 12 years, this combine would have a trade in value of $173,000. Assume Ned's MARR is 3%. 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 05. Which alternative would you recommend for Farmer Ned? 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 12 years. If Ned rebuilds his combine, it will cost $37,000 to do so and will cost $8,000 per year to operate and maintain. At the end of 12 years, the rebuilt combine will have a negligible salvage value. If Ned purchases a new combine, he would trade in his current combine for $73,000. He estimates a new combine would cost $300,000 and would cost $1,550 per year to maintain. At the end of 12 years, this combine would have a trade in value of $173,000. Assume Ned's MARR is 3%. Compute the EUAC for each alternative using the opportunity cost approach. Click here to access the TVM Factor Table Calculator. $ EUAC(rebuild): Either alternative is fine C 1 Trade in his current combine for a new combine es and then round your final answers to a whole number. Rebuild the engine on his current combine armer Ned

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