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Need help with this, please Instructor-created question Question Help A present asset (defender) has a current market value of $85,000 (year 0 dollars). Estimated market
Need help with this, please
Instructor-created question Question Help A present asset (defender) has a current market value of $85,000 (year 0 dollars). Estimated market values at the end of the next three years, expressed in year 0 dollars, are MV1= $75190, MV2 = $63654, MV3 = $43709. The annual expenses (expressed in year 0 de are $15,000 and are expected to increase at 4.5% per year. The before-tax nominal MARR is 15% per year. The best challenger has an economic life of five years and its associated EUAC is $39,100. Based on this information and a before-tax analysis, what are the marginal costs of the defender each year and when should you plan to replace the defender with the challenger? Please calculate answers to the nearest whole dollar. Format: 0000 No commas. a. What is the EUAC of the challenger? $39100 b. Fill out the table below. Year MV CR Amount Cumulative EUAC Annual Expenses PW Annual Expenses EUAC Annual Expenses 0 1 85000 75190 9810 15675 15675 16380 13630 12386 15675 7619) 2 63654 21346 23294 3 43709 41300 17117 11255 4929 28223 C. The defender should be kept 3 years and sold after because O A. EUAC of the Defender is less than the Challenger O B. EUAC of the Defender is greater than the Challenger Instructor-created question Question Help A present asset (defender) has a current market value of $85,000 (year 0 dollars). Estimated market values at the end of the next three years, expressed in year 0 dollars, are MV1= $75190, MV2 = $63654, MV3 = $43709. The annual expenses (expressed in year 0 de are $15,000 and are expected to increase at 4.5% per year. The before-tax nominal MARR is 15% per year. The best challenger has an economic life of five years and its associated EUAC is $39,100. Based on this information and a before-tax analysis, what are the marginal costs of the defender each year and when should you plan to replace the defender with the challenger? Please calculate answers to the nearest whole dollar. Format: 0000 No commas. a. What is the EUAC of the challenger? $39100 b. Fill out the table below. Year MV CR Amount Cumulative EUAC Annual Expenses PW Annual Expenses EUAC Annual Expenses 0 1 85000 75190 9810 15675 15675 16380 13630 12386 15675 7619) 2 63654 21346 23294 3 43709 41300 17117 11255 4929 28223 C. The defender should be kept 3 years and sold after because O A. EUAC of the Defender is less than the Challenger O B. EUAC of the Defender is greater than the ChallengerStep by Step Solution
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