Question
Find the optimum replacement interval AND the minimum EUAC for each of the scenarios below. Please show cash flow diagram and do not use excel
Find the optimum replacement interval AND the minimum EUAC for each of the scenarios below.
Please show cash flow diagram and do not use excel functions.
$225,000 is invested in equipment having a salvage value that decreases by 25% per year. O&M costs equal $45,000 the first year and increase by $30,000 per year. Consider a MARR of 10%.
| n | EUAC |
| 1 |
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| 2 |
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| 3 |
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| 4 |
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| 5 |
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| 6 |
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| 7 |
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| 8 |
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| 9 |
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| 10 |
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Based on the results obtained, what can you conclude concerning the effect of O&M costs on the optimum replacement interval?
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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
4th Edition
1492559733, 978-1492559733
