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With the estimates shown below, Sarah needs to determine the tradein (replacement) value of machine X that will render its AW equal to that of
With the estimates shown below, Sarah needs to determine the tradein (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 13% per year. Determine the replacement value. Machine X Machine Y | Market Value, $ ? 88,000 | Annual Cost, $ per Year 58,500 40,000 for year 1,increasing by 2000 per year thereafter. | Salvage Value 17,500 22,000 |
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