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solving using engineering economics way with P|F. thanks 8) (35 points) machine because of an increase in demand for its electronic goods. The machine has

solving using engineering economics way with P|F. thanks

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8) (35 points) machine because of an increase in demand for its electronic goods. The machine has a remaining life of 5 years and it will have a salvage value of $10,000 at the end of its useful life. O&M costs have been $35,000/yr. Currently the machine has a market value of S50,000 Alternative 1 EmKay Electronics Corporation is contemplating replacing an existing automatic assembly new automatic machine with the following characteristics is being considered: Initial cost: $150,000 Estimated life: 5 years End-of-life salvage: $25,000 Annual O&M costs: $40,000. If a new machine is purchased, then the company expects to sell the existin Alternative 2 If the exis increase in demand. The smaller machine will cost S75,000, has a salvage value of S10,000 in 5 years, and has O&M costs of $15,000/yr. g machine at its market value ting machine is retained, another small machine will have to be purchased in order to meet the Using an annual cost comparison, with a MARR of 1 preferred course of action. 5% per year compounded annually, determine the

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