A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $24,000 and replaced by a newer model having a purchase price of $41,500: or it can be kept in service for a maximum of one moreyear. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the following data table for your analysis.ChallengerTAerket Volye$41,500De fenderDRM CosteDRM CostMerhel Voiue524.00030.00017 500$14,00058.00012,00024,000A Click the icon to view the interest and annuity table for discrete compounding when the MARR Is 18% per yearThe minimum EUAC value of the challenger is S (Round to the nearest dollar.)The marginal cost of keeping the defender in service for one more year is $(Round to the nearest dallar.)The old assembly machine should be replacedimmediatelyin one year

EUAC(Equivalent Uniform Annual Cost) refers to cost of operating an asset over it’s life considering…

A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $24,000 and replaced by a newer model having a purchase price of $41,500, or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the following data table for your analysis. Chaleoger De lender Methel Volu $24,000 Marka Volue $41,500 30.000 24,000 Yast ORM Cost $14,000 58.000 12,000 17.500 2 A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year. The minimum EUAC value of the challenger is S (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is S(Round to the nearest dollar.) The old assembly machine should be replaced immediately in one year

A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $24,000 and replaced by a newer model having a purchase price of $41,500, or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the following data table for your analysis. Chaleoger De lender Methel Volu $24,000 Marka Volue $41,500 30.000 24,000 Yast ORM Cost $14,000 58.000 12,000 17.500 2 A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year. The minimum EUAC value of the challenger is S (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is S(Round to the nearest dollar.) The old assembly machine should be replaced immediately in one year

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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