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For injection molding, I choose to (replace/keep) ____________ Since the |difference| in the PW of the machines is $_________ [units in $K] Side Huzzlers owns
For injection molding, I choose to (replace/keep) ____________
Since the |difference| in the PW of the machines is $_________ [units in $K]
Side Huzzlers owns a injection molding machine. Its current market value is $25,000. It can be productively used for 4 more years at which time its market value will be zero. Operating and maintenance expenses are $50,000 per year. Instead, you can purchase a new injection molding machine for $90,000. In 4 years, the market value of the new machine is estimated to be $45,000. Annual operating and maintenance costs will be $35,000 per year because it's a better machine. For such decisions, Side Huzzlers uses a before-tax MARR of 10%. Side Huzzlers owns a injection molding machine. Its current market value is $25,000. It can be productively used for 4 more years at which time its market value will be zero. Operating and maintenance expenses are $50,000 per year. Instead, you can purchase a new injection molding machine for $90,000. In 4 years, the market value of the new machine is estimated to be $45,000. Annual operating and maintenance costs will be $35,000 per year because it's a better machine. For such decisions, Side Huzzlers uses a before-tax MARR of 10%Step by Step Solution
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