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URGENT!! PLEASE HELP!! The Ajax Corpoartion has an overhead crane that has an estimated remaining life of 9 years. The crane can be sold now
URGENT!! PLEASE HELP!!
The Ajax Corpoartion has an overhead crane that has an estimated remaining life of 9 years. The crane can be sold now for $8,000. If the crane is kept in service, it must be overhauled immidiately at a cost of $5,000. Operating and maintenance costs will be $2,000 per year after the crane is overhauled. The overhauled crane will have zero MV at the end of the 9-year study period. A new crane will cost $16,000, will last for 9 years, and will have a $5,000 MV at that time. Operating and maintenance costs are $1,000 per year for the new crane. The company uses a before-tax interest rate of 11% per year in evaluating investment alternatives. Should the company replace the old crane? Discrete Compounding; i 11% Single Payment Uniform Series Compound Sinking Compound Capital Recovery Amount Present Amount Present Fund Worth Factor Factor Factor Worth Factor Factor Factor To Find P To Find P To Find A To Find A To Find F To Find F Given A Given P Given P Given F Given A Given F F/P F/A P/A A/F A/P N P/F 0.9009 1.1100 1 1.1100 1.0000 0.9009 1.0000 2.1100 2 1.2321 0.8116 1.7125 0.4739 0.5839 0.2992 3 1.3676 0.7312 3.3421 2.4437 0.4092 4 1.5181 0.6587 4.7097 3.1024 0.2123 0.3223 1.6851 6.2278 0.2706 5 0.5935 3.6959 0.1606 0.5346 7.9129 6 1.8704 4.2305 0.1264 0.2364 2.0762 9.7833 0.1022 0.2122 7 0.4817 4.7122 11.8594 0.0843 8 2.3045 0.4339 5.1461 0.1943 0.0706 9 2.5580 0.3909 14.1640 5.5370 0.1806 10 2.8394 0.3522 16.7220 5.8892 0.0598 0.1698Step by Step Solution
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