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please do it all or leave it Question 1 (1 point) A commuter airline company is considering replacing on of it baggage handling machines with
please do it all or leave it
Question 1 (1 point) A commuter airline company is considering replacing on of it baggage handling machines with a newer and more efficient machine. The book value of the old machine is $50,000, and it has a useful remaining life of of five years. The salvage value of the old machine at the end of five years is zero, but the company can sell the machine now for $10,000. The new baggage handling machine will cost $120,000 and has an estimated useful life of seven years. It has an estimated salvage value of $30,000 and is expected to have a total annual savings of $50,000. The company has a MARR of 15%. Should the airline purchase the new machine? O Yes, purchase the new machine O No, keep the existing machine None of the above O Either machine Save Question 2 (1 point) The company is considering replacing a broken inspection machine. They can purchase a used machine for $5000. The used machine will require an immediate $1200 overhaul to restore it to working condition. If repaired the machine can be used for another 3 years. The operating costs are estimated at $2000 during the first year, and these costs are expected to increase by $1500 per year thereafter. The value of the machine is expected to decline by 25% per year over the previous year's value (from the original $5000). At a MARR of 15%, determine the economic service life of the machine O 1 year O 2 years 3 years None of the above SaveStep by Step Solution
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