Question 1:In a replacement analysis for a vacuum seal on a spacecraft, the following data are known about the challenger: the initial investment is $11,500; there is no annual maintenance cost for the first three years, however, it will be $1,500 in each of years four and five, and then $4,000 in the sixth year and increasing by $3,300 each year thereafter. The salvage value is $0 at all times, and MARR is 9% per year. What is the economic life of this challenger?

Below is the interest and annuity table for discrete compounding when the MARR is 9% per year.

Question 2:

The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $25,000 for installation and will have an estimated economic life of 14 years and a $2,200 MV at that time. It is estimated that annual expenses will average $15,000 per year. The defender has a present BV of $5,000 and a present MV of $2500. Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now.

What is the EUAC of the Challenger in $?

Should the present machine immediately?

Below is the the interest and annuity table for discrete compounding whenis equals=15% per year.

In a replacement analysis for a vacuum seal on a spacecraft, the following data are known about the challenger: the initial investment is $11,500; there is no annual maintenance cost for the first three years, however, it will be $1,500 in each of years four and five, and then $4,000 in the sixth year and increasing by $3,300 each year thereafter. The salvage value is $0 at all times, and MARR is 9% per year. What is the economic life of this challenger? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. The economic life of this challenger isyears. (Round to the nearest whole number.) Single Payment Compound Amount Uniform Series Compound Amount Sinking Fund Capital Recovery Factor Present Present Factor Worth Factor Factor Worth Factor Factor To Find A Given P To Find F To Find P Given F To Find F To Find P To Find A Given P Given A Given A Given F F/P P/F F/A P/A A/F A/P 0.9174 1.0000 1 1.0900 0.9174 1.0000 1.0900 2.0900 2 1.1881 0.8417 1.7591 0.4785 0.5685 2.5313 0.3051 1.2950 0.7722 3.2781 0.3951 3.2397 4 1.4116 0.7084 4.5731 0.2187 0.3087 1.5386 0.6499 5 5.9847 3.8897 0.1671 0.2571 0.2229 1.6771 0.5963 7.5233 4.4859 0.1329 9.2004 0.1987 7 1.8280 0.5470 5.0330 0.1087 0.1807 0.1668 8 1.9926 0.5019 11.0285 5.5348 0.0907 9 2.1719 0.4604 13.0210 5.9952 0.0768 6.4177 0.1558 10 2.3674 0.4224 15.1929 0.0658 The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $25,000 for installation and will have an estimated economic life of 14 years and a $2,200 MV at that time. It is estimated that annual expenses will average $15,000 per year. The defender has a present BV of $5,000 and a present MV of $2500 Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now MV at End of BV at End of Expenses during Year Year the Year Year $ 2,500 $3,750 $20,000 1 2 -2,750 -3,000 2,500 1,250 27,000 34,000 3 Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year EUAC 1 $ 2 S Enter your answer in the edit fields and then click Check Answer. Discrete Compounding; i=15% Single Payment Compound Amount Factor Uniform Series Sinking Fund Compound Amount Capital Recovery Factor Present Worth Factor Present Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P F/P P/F F/A P/A A/F A/P 1.0000 1 1.1500 0.8696 0.8696 1.0000 1.1500 2 1.3225 0.7561 2.1500 1.6257 0.4651 0.6151 0.2880 1.5209 0.6575 3.4725 2.2832 0.4380 4 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 5 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 0.2404 2.6600 0.3759 11.0668 4.1604 0.0904 8 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 9 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 0.0596 0.2843 9 3.5179 16.7858 4.7716 0.2096 5.0188 0.1993 10 4.0456 0.2472 20.3037 0.0493 5.2337 11 4.6524 0.2149 24.3493 0.0411 0.1911 12 5.3503 0.1869 29.0017 5.4206 0.0345 0.1845 13 6.1528 0.1625 34.3519 5.5831 0.0291 0.1791 0.1747 40.5047 0.0247 14 7.0757 0.1413 5.7245 8.1371 15 0.1229 47.5804 5.8474 0.0210 0.1710 In a replacement analysis for a vacuum seal on a spacecraft, the following data are known about the challenger: the initial investment is $11,500; there is no annual maintenance cost for the first three years, however, it will be $1,500 in each of years four and five, and then $4,000 in the sixth year and increasing by $3,300 each year thereafter. The salvage value is $0 at all times, and MARR is 9% per year. What is the economic life of this challenger? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. The economic life of this challenger isyears. (Round to the nearest whole number.) Single Payment Compound Amount Uniform Series Compound Amount Sinking Fund Capital Recovery Factor Present Present Factor Worth Factor Factor Worth Factor Factor To Find A Given P To Find F To Find P Given F To Find F To Find P To Find A Given P Given A Given A Given F F/P P/F F/A P/A A/F A/P 0.9174 1.0000 1 1.0900 0.9174 1.0000 1.0900 2.0900 2 1.1881 0.8417 1.7591 0.4785 0.5685 2.5313 0.3051 1.2950 0.7722 3.2781 0.3951 3.2397 4 1.4116 0.7084 4.5731 0.2187 0.3087 1.5386 0.6499 5 5.9847 3.8897 0.1671 0.2571 0.2229 1.6771 0.5963 7.5233 4.4859 0.1329 9.2004 0.1987 7 1.8280 0.5470 5.0330 0.1087 0.1807 0.1668 8 1.9926 0.5019 11.0285 5.5348 0.0907 9 2.1719 0.4604 13.0210 5.9952 0.0768 6.4177 0.1558 10 2.3674 0.4224 15.1929 0.0658 The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $25,000 for installation and will have an estimated economic life of 14 years and a $2,200 MV at that time. It is estimated that annual expenses will average $15,000 per year. The defender has a present BV of $5,000 and a present MV of $2500 Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now MV at End of BV at End of Expenses during Year Year the Year Year $ 2,500 $3,750 $20,000 1 2 -2,750 -3,000 2,500 1,250 27,000 34,000 3 Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year EUAC 1 $ 2 S Enter your answer in the edit fields and then click Check Answer. Discrete Compounding; i=15% Single Payment Compound Amount Factor Uniform Series Sinking Fund Compound Amount Capital Recovery Factor Present Worth Factor Present Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P F/P P/F F/A P/A A/F A/P 1.0000 1 1.1500 0.8696 0.8696 1.0000 1.1500 2 1.3225 0.7561 2.1500 1.6257 0.4651 0.6151 0.2880 1.5209 0.6575 3.4725 2.2832 0.4380 4 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 5 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 0.2404 2.6600 0.3759 11.0668 4.1604 0.0904 8 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 9 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 0.0596 0.2843 9 3.5179 16.7858 4.7716 0.2096 5.0188 0.1993 10 4.0456 0.2472 20.3037 0.0493 5.2337 11 4.6524 0.2149 24.3493 0.0411 0.1911 12 5.3503 0.1869 29.0017 5.4206 0.0345 0.1845 13 6.1528 0.1625 34.3519 5.5831 0.0291 0.1791 0.1747 40.5047 0.0247 14 7.0757 0.1413 5.7245 8.1371 15 0.1229 47.5804 5.8474 0.0210 0.1710