You own several copiers that are currently valued at $10,000, combined. Annual operating and maintenance costs for all copiers are estimated at $9,000 next year, increasing by 10 percent each year thereafter. Salvage values decrease at a rate of 20 percent per year. You are considering replacing your existing copiers with new ones that have a suggested retail price of $26,000. Operating and maintenance costs for the new equipment will be $7,000 over the first year, increasing by 10 percent each year thereafter. The salvage value of the new equipment is well approximated by a 20 percent drop from the suggested retail price per year. Furthermore, you can get a trade-in allowance of $11,000 for your equipment if you purchase the new equipment at its suggested retail price. Your MARR is 8 percent. Should you replace your existing equipment now? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 8% total EAC than the new equipment, which has an economic life of The economic life of the existing equipment is year(s) with a total EAC of $. This is a (Round to the nearest whole number as needed.) year(s) and a total EAC of You V replace your existing equipment now. Compound interest factors for discrete compounding periods (i=8%) Single Payment Uniform Series N 1 2 3 4 5 Uniform Series Factor (FIA,1,N) 1.0000 2.0800 3.2464 4.5061 5.8666 Compound Present Amount Worth Factor Factor (F/P,1,N) (P/FIN) 1.0800 0.92593 1.1664 0.85734 1.2597 0.79383 1.3605 0.73503 1.4693 0.68058 1.5869 0.63017 1.7138 0.58349 1.8509 0.54027 1.9990 0.50025 2.1589 0.46319 2.3316 0.42888 2.5182 0.39711 2.7196 0.36770 2.9372 0.34046 3.1722 0.31524 3.4259 0.29189 3.7000 0.27027 3.9960 0.25025 4.3157 0.23171 4.6610 0.21455 5.0338 0.19866 5.4365 0.18394 5.8715 0.17032 6.3412 0.15770 6.8485 0.14602 7.3964 0.13520 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sinking Fund Factor (A/F,1,N) 1.00000 0.48077 0.30803 0.22192 0.17046 0.13632 0.11207 0.09401 0.08008 0.06903 0.06008 0.05270 0.04652 0.04130 0.03683 0.03298 0.02963 0.02670 0.02413 0.02185 0.01983 0.01803 0.01642 0.01498 0.01368 0.01251 7.3359 8.9228 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 Series Present Worth Factor (PIA,1,N) 0.92593 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 Capital Recovery Factor (A/P,1,N) 1.0800 0.56077 0.38803 0.30192 0.25046 0.21632 0.19207 0.17401 0.16008 0.14903 0.14008 0.13270 0.12652 0.12130 0.11683 0.11298 0.10963 0.10670 0.10413 0.10185 0.09983 0.09803 0.09642 0.09498 0.09368 0.09251 Arithmetic Gradient Series Factor (A/G,1,N) 0.00000 0.48077 0.94874 1.4040 1.8465 2.2763 2.6937 3.0985 3.4910 3.8713 4.2395 4.5957 4.9402 5.2731 5.5945 5.9046 6.2037 6.4920 6.7697 7.0369 7.2940 7.5412 7.7786 8.0066 8.2254 8.4352 37.450 9.3719 41.446 45.762 50.423 55.457 60.893 66.765 9.6036 9.8181 10.017 10 201 10.371 10.529 10.675 10.810 73.106 79.954 Print Done You own several copiers that are currently valued at $10,000, combined. Annual operating and maintenance costs for all copiers are estimated at $9,000 next year, increasing by 10 percent each year thereafter. Salvage values decrease at a rate of 20 percent per year. You are considering replacing your existing copiers with new ones that have a suggested retail price of $26,000. Operating and maintenance costs for the new equipment will be $7,000 over the first year, increasing by 10 percent each year thereafter. The salvage value of the new equipment is well approximated by a 20 percent drop from the suggested retail price per year. Furthermore, you can get a trade-in allowance of $11,000 for your equipment if you purchase the new equipment at its suggested retail price. Your MARR is 8 percent. Should you replace your existing equipment now? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 8% total EAC than the new equipment, which has an economic life of The economic life of the existing equipment is year(s) with a total EAC of $. This is a (Round to the nearest whole number as needed.) year(s) and a total EAC of You V replace your existing equipment now. Compound interest factors for discrete compounding periods (i=8%) Single Payment Uniform Series N 1 2 3 4 5 Uniform Series Factor (FIA,1,N) 1.0000 2.0800 3.2464 4.5061 5.8666 Compound Present Amount Worth Factor Factor (F/P,1,N) (P/FIN) 1.0800 0.92593 1.1664 0.85734 1.2597 0.79383 1.3605 0.73503 1.4693 0.68058 1.5869 0.63017 1.7138 0.58349 1.8509 0.54027 1.9990 0.50025 2.1589 0.46319 2.3316 0.42888 2.5182 0.39711 2.7196 0.36770 2.9372 0.34046 3.1722 0.31524 3.4259 0.29189 3.7000 0.27027 3.9960 0.25025 4.3157 0.23171 4.6610 0.21455 5.0338 0.19866 5.4365 0.18394 5.8715 0.17032 6.3412 0.15770 6.8485 0.14602 7.3964 0.13520 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sinking Fund Factor (A/F,1,N) 1.00000 0.48077 0.30803 0.22192 0.17046 0.13632 0.11207 0.09401 0.08008 0.06903 0.06008 0.05270 0.04652 0.04130 0.03683 0.03298 0.02963 0.02670 0.02413 0.02185 0.01983 0.01803 0.01642 0.01498 0.01368 0.01251 7.3359 8.9228 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 Series Present Worth Factor (PIA,1,N) 0.92593 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 Capital Recovery Factor (A/P,1,N) 1.0800 0.56077 0.38803 0.30192 0.25046 0.21632 0.19207 0.17401 0.16008 0.14903 0.14008 0.13270 0.12652 0.12130 0.11683 0.11298 0.10963 0.10670 0.10413 0.10185 0.09983 0.09803 0.09642 0.09498 0.09368 0.09251 Arithmetic Gradient Series Factor (A/G,1,N) 0.00000 0.48077 0.94874 1.4040 1.8465 2.2763 2.6937 3.0985 3.4910 3.8713 4.2395 4.5957 4.9402 5.2731 5.5945 5.9046 6.2037 6.4920 6.7697 7.0369 7.2940 7.5412 7.7786 8.0066 8.2254 8.4352 37.450 9.3719 41.446 45.762 50.423 55.457 60.893 66.765 9.6036 9.8181 10.017 10 201 10.371 10.529 10.675 10.810 73.106 79.954 Print Done