Pace Corporation in Cookeville, Tennessee bought production equipment 2 years ago for $38,000. The equipment was expected to last for 5 years and the salvage value was estimated to be $4,000 at the end of its useful life. Unfortunately, the equipment did not perform satisfactorily and the company spent $15,000 a year ago. It is recommended by the plant engineer that the equipment be either upgraded now for another $12,000 or replaced with equipment now. If the equipment is replaced now, it can be sold for $8,000. In conducting a replacement analysis, the cost of the defender to be used is equal to: $38,000 $35,000 $27,000 $8,000 The minimum cost life of a new replacement machine is 6 years with a minimum equivalent annual cost of $6000 Given the existing machine's marginal cost data for the next 4 years, when should the existing machine be replaced? After Year 1 After Year 2 After Year 3 After 6 years A deposit of $1000 is made into an account that promises a minimum of 2% per year increase in purchasing power. If general price inflation is 3, 1, and 5%, respectively, over the next 3 years, the minimum value that will be in the account at Year 3 is closest to what amount? $1061 $1092 $1159 $1177 CalcTech has $1.3M in current assets and $550,000 in fixed assets less $200,000 in accumulated depreciation. The firm's current liabilities total $180,000, and the long-term liabilities $205,000. What is the firm's equity $1, 300,000 $1, 850,000 $1, 265,000 $915,000 What is the working capital of a firm with the financial information shown in the table? $88,000 $90,000 $300,000 $575,000