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ZZY Inc. is considering replacing a machine. These are the data for both the used and new machine. Used machine: the machine was purchased for
ZZY Inc. is considering replacing a machine. These are the data for both the used and new machine. Used machine: the machine was purchased for $15883 two years ago, the current salvage value is $11579 and is expected to have a scrap value of $6164 whenever it is retired. This used machine still has 5 years left of service. From now on, the operating and Maintenance costs are $1628 for the first year and expected to increase by $1924 thereafter. New Machine: machine costs $12782 and is expected to have a scrap value of $9931 whenever it is retired. Operating and Maintenance costs are $1761 for the first year and expected to increase by $1938 thereafter. The service life of this machine is 4 years. If the MARR is 9%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine that offers the lowest EUAC. Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs nor commas. You Answered 9361.4000 Correct Answer 5202.77 margin of error +/-100.0
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