Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please do by hand NO EXCEL 6. Your, assignment t is to prepare a ATCF replacement analysis study. Defender The actual machine was installed 10
please do by hand NO EXCEL
6. Your, assignment t is to prepare a ATCF replacement analysis study. Defender The actual machine was installed 10 years ago at a cost of $85,000. Now it has a market value of $25,000. If kept has an economic life of five (5) years and a salvage value of $10,000.. Annual operating and maintenance cost of $12,000. For depreciation use straight line method Using a life of 15 year and estimates Salvage Value of $10,000. Challenger A new machine is under consideration; it will cost $90,000 and have annual operating and maintenance cost of $9,000. The new machine has an economic life of 20 years and a Salvage Value of $20,000. Use for depreciation straight-line method. For both machines use income tax rate of 40%,and MARR of 8% a. Set up a table for the computation of ATCF for defender and challenger, and determine whether replacement now is economical. (20ptos) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started