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X Problem 9-9 (algorithmic) E Question Help 0 The replacement of a planning machine is being considered by the Reardon Furniture Company. (There is an
X Problem 9-9 (algorithmic) E Question Help 0 The replacement of a planning machine is being considered by the Reardon Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $25,000 for installation and will have an estimated economic life of 14 years and a $2,200 MV at that time. It is estimated that annual expenses will average $15,000 per year. The defender has a present BV of $5,500 and a present MV of $3500. Data for the defender for the next three years are given below. Using a before-tax interest rate of 12% per year, make a comparison to determine whether it is economical to make the replacement now. Year MV at End of BV at End of Expenses during Year Year the Year 1 $- 1,500 $4,125 $18,000 - 2,250 22,000 - 3,000 1,375 26,000 a Click the icon to view the interest and annuity table for discrete compounding when i= 12% per year. 2,750 Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year EUAC * EN Enter your answer in the edit fields and then click Check
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