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Your business needs an excavator and you are faced with the following two alternatives Alternative A Keep using an old excavator: You currently own an

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Your business needs an excavator and you are faced with the following two alternatives Alternative A Keep using an old excavator: You currently own an excavator that you purchased a long time ago, its current market value is 5120,000. The operating and maintenance cost for the excavator are $200.00 each year. In 10 years, the salvage value of the this excavator is expected to bezero. Alternative Sell the old excavator and buy a new one. You could sell the current excavator for its market value and purchase a new excavator for $600.000. The annual costs would be $100,000 in year 1 and increase by 18 each subsequent year. The salvate value of this excavator at the end of 10 years is expected to be 550,000. MARRIN 18 Draw the cash flow diagram for both alternatives and perform an analysis using EUA to determine whether it is economical to replace the old excavator with the new one. Provide the following answers EUAC of alternative B fround to the nearest thousand og 152458 > 152000) Which alternative thould be chosen type A or BX

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