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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
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 14% per year. Determine the replacement value. Machine X Machine Y 91.000 Market Value, $ ? Annual Cost, $ per year -55,000 -40,000 for year 1, increasing by 2000 per year thereafter. 16,000 Salvage Value Life, Years 18,500 3 5 The replacement value is $ 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 14% per year. Determine the replacement value. Machine X Machine Y 91.000 Market Value, $ ? Annual Cost, $ per year -55,000 -40,000 for year 1, increasing by 2000 per year thereafter. 16,000 Salvage Value Life, Years 18,500 3 5 The replacement value is $ 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 14% per year. Determine the replacement value. Machine X Machine Y 91.000 Market Value, $ ? Annual Cost, $ per year -55,000 -40,000 for year 1, increasing by 2000 per year thereafter. 16,000 Salvage Value Life, Years 18,500 3 5 The replacement value is $
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