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Instructions : Write a paragraph that includes the concepts displayed below. Use the Example Numbers to illustrate your points. Explain in detail each point. After

Instructions:

Write a paragraph that includes the concepts displayed below. Use the Example Numbers to illustrate your points. Explain in detail each point.

After submitting your writing, respond to two (2) other students. Discuss how you agree or disagree in a respectful manner. If you disagree explain how you would proceed.

Your writing and responses can be in English or Spanish.

Example Numbers:

Old Machine

n Repair Value Salvage Value O&M CR(10%) OC(10%) AEC(10%)
0 $1,200 $5,000
1 $4,000 $2,000 $2,420 $2,000 $4,420
2 $3,000 $3,500 $2,144 $2,714 $4,858
3 $2,000 $5,000 $1,889 $3,405 $5,294
4 $1,000 $6,500 $1,740 $4,072 $5,812
5 $0 $8,000 $1,636 $4,715 $6,351

New Machine

n Market Value O&M CR(10%) OC(10%) AEC(10%)
0 $6,000
1 $5,100 $2,000 $5,900 $2,000 $7,900
2 $4,335 $2,800 $3,698 $2,381 $6,079
3 $3,685 $3,600 $2,908 $2,749 $5,657
4 $3,132 $4,400 $2,480 $3,105 $5,585
5 $2,662 $5,200 $2,202 $3,448 $5,650

Concepts to include:

How to decide if replacement takes places now.

How to use marginal analysis to decide when to replace.

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