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Interest and Annuity table for 12% is provided under the question. Five years ago, a company in New Jersey installed a diesel-electric unit costing $45,000
Interest and Annuity table for 12% is provided under the question.
Five years ago, a company in New Jersey installed a diesel-electric unit costing $45,000 at a remote site because no dependable electric power was available from public utility. The company has computed depreciation by the straight-line method with a useful life of 10 years and a zero salvage value. Annual operation and maintenance expenses are $17,000, and property taxes and insurance cost another $3,300 per year. Dependable electric service is now available at an estimated annual cost of $28,000. The company in New Jersey wishes to know whether it would be more economical to dispose of the diesel-electric unit now, when it can be sold for $30,000, or to wait five years when the unit would have to be replaced anyway (with no MV) he company has an effective income tax rate of 40% and tries to limit its capital expenditures to opportunities t will earn at least 12% per year after incom taxes. What would you recommend? Click the icon to view the interest and annuity table for discrete compounding when MARR 12% per year The AW value for the defender is (Round to the nearest dollarStep by Step Solution
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