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With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of

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With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 9% per year. Determine the replacement value. Market Value, $ Machine X ? Annual Cost, $ per Year -55,500 Machine Y 92,000 -40,000 for year 1,increasing by 2000 per year thereafter. 17.000 5 Salvage Value Life, Years 15,500 3 The replacement value is $ 29010.4

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