Yes 3 recovery period

Your, assignment t e to prepare a ATCF replacement analysis study. Defender The actual machine was installed 2 years ago at a cost of $80,000. The actual machine has a life of 6 years (when was installed). Now it has a market value of $60,000. If kept has an economic life of four (4) years and a salvage value of $10,000. Annual operating and maintenance cost of $12,000. For depreciation use SL-ADS 3 years property class and recovery period. Challenger A new machine is under consideration, it will cost $90,000 and have annual operating and maintenance cost of $9,000. The new machine has an economic life of 10 years and a salvage value of $20,000. Use for depreciation conventional straight-line method. For both machines use income tax rate of 40%, and MARR of 12% Set up a table for the computation of ATCF for defender and using challenger PW determine whatever replacement can be made or not Remember Challenger table is all ready done