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UU. 9-8. A construction firm currently owns a heavy-duty tractor that has a present marke value (MV) of $80,000. Estimates of the tractor's operating and
UU. 9-8. A construction firm currently owns a heavy-duty tractor that has a present marke value (MV) of $80,000. Estimates of the tractor's operating and maintenance (OEM expenses and MV at the end of each of the remaining 6 years of useful life are as fol- lows: End of year O&M expenses Market value $20,000 70,000 $25,000 60.000 $38.000 50.000 $45,000 40.000 $47.000 30.000 $50,000 20.000 The firm is considering a new heavy-duty tractor to replace the one presently owned. The new tractor's purchase price is $220,000 and its estimated O&M and MV for each of the next 6 years of the study period are these: End of year O&M expenses Market value $10,000 180.000 $12.000 150.000 $16,000 120,000 $17,000 100.000 $20,000 90.000 $25.000 75.000 9.9. MARR = 0% per year, should the new tractor be purchased? If so, when? An An
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