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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 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 13 years and a $1,800 MV at that time. It is estimated that annual expenses will average $16,500 per year. The defender has a present BV of $5,500 and a present MV of $4000. Data for the defender for the next three years are given below. Using a before-tax interest rate of 18% per year, make a comparison to determine whether it is economical to make the replacement now Year MV at End of BV at End of Expenses during Year S 1,000 1,500 -2,000 Year $4,125 2,750 1,375 the Year $22,000 28,000 34,000 2 Click the icon to view the interest and annuity table for discrete compounding when i= 18% per year Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year EUAC 2 Discrete Compounding: i-18% Single Payment Uniform Series Compound Amount Factor To FindF Given P Compound Capital Recovery Present Worth Factor To Find P Given F Present Worth Factor To Find P Given A PIA 0.8475 1.5656 2.1743 2.6901 3.1272 3.4976 Fund Factor To Find A Given F A/F 1.0000 0.4587 0.2799 Factor To Find F Given A To Find A Given P A/P 1.1800 0.6387 0.4599 0.3717 0.3198 0.2859 0.2624 0.2452 0.2324 0.2225 0.2148 0.2086 0.2037 0.1997 0.1964 1.1800 1.3924 1.6430 1.9388 2.2878 2.6996 3.1855 3.7589 4.4355 5.2338 6.1759 7.2876 8.5994 10.1472 11.9737 0.8475 0.7182 0.6086 0.5158 0.4371 0.3704 0.3139 0.2660 0.2255 1.0000 2.1800 3.5724 5.2154 7.1542 9.4420 2 4 15.3270 19.0859 23.5213 28.7551 34.9311 42.2187 50.8180 60.9653 4.0776 4.3030 4.4941 4.6560 4.7932 4.9095 5.0081 5.0916 0.1398 0.1059 0.0824 0.0652 0.0524 0.0425 0.0348 0.0286 0.0237 0.0197 0.0164 0.1619 0.1372 0.0985 0.0835
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