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 $35,000 for installation and will have an estimated economic life of 14 years and a $1,500 MV at that time. It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,500 and a present MV of $4500. 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.

i More Info X Discrete Compounding; i = 15% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor 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 2 F/P P/F F/A P/A A/F A/P 1.1500 0.8696 1.0000 0.8696 1.0000 1. 1500 1.3225 0.7561 2. 1500 1.6257 0.4651 0.6151 1.5209 0.6575 3.4725 2.2832 0.2880 0.4380 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 2.6600 0.3759 11.0668 4.1604 0.0904 0.2404 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 10 4.0456 0.2472 20.3037 5.0188 0.0493 0.1993 11 4.6524 0.2149 24.3493 5.2337 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 14 7.0757 0.1413 40.5047 5.7245 0.0247 0.1747 15 8.1371 0.1229 47.5804 5.8474 0.0210 0.1710 Print DoneThe 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 $35,000 for installation and will have an estimated economic life of 14 years and a $1,500 MV at that time It is estimated that annual expenses will average $17,000 per year. The defender has a present BV of $6,500 and a present MV of $4500. 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 s economical to make the replacement now. Year MV at End of BV at End of Expenses during Year Year the Year $3,500 $4,875 $20,000 WN - 3,250 3,250 26,000 3.000 1,625 32,000 F 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 W N The EUAC for the challenger over its useful life is $ . (Round to the nearest dollar.) The replacement should be made immediately at the EOY 3 at the EOY 2 at the EOY 1