What is the minimum EUAC value of the challenger?

What is the marginal cost of keeping the defender in service for one more year?

Problem 9-7 (algorithmic) EQuestion Help A high-speed electronic assembly machine was purchased two years ago for S50,000. At the present time, it can be sold for $27,000 and replaced by a newer model having a purchase price of S42,500; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 20%, when should the old assembly machine be replaced? Use the following data table for your analysis, Challenger Defender Year Market Value O&M Costs O&M Costs Market Value S42,500 $27,000 $10.500 17,500 30,000 S16,000 27,000 2,500 click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year