A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. If the current machine is replaced, the newmachine will cost $44,000 and will reduce the operating expenses by $6,000 per year. The seller of the newmachine has offered a trade-in allowance of $15,000 for the old machine. If MARR is 12% per year before taxes, how much can the company spend to repair the existing machine? Choose the closest answer. Solve, (a) $22,371 (b) $50,628 (c) $7,371 (d) −$1,000 Machine A was purchased three years ago for $10,000 and had an estimated MV of $1,000 at the end of its 10-year life. Annual operating costs are $1,000. The machine will perform satisfactorily for the next sevenyears. A salesperson for another company is offering Machine B for $50,000 with an MV of $5,000 after 10 years. Annual operating costs will be $600. Machine A could be sold now for $7,000, andMARR is 12% per year. Use this information to answer, Using the outsider viewpoint, what is the EUACof continuing to use Machine A? Choose the closest answer. (a) $1,000 (b) $2,182 (c) $2,713 (d) $901 (e) $2,435.
A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. If the current machine is replaced, the new
machine will cost $44,000 and will reduce the operating expenses by $6,000 per year. The seller of the newmachine has offered a trade-in allowance of $15,000 for the old machine. If MARR is 12% per year before taxes, how much can the company spend to repair the existing machine? Choose the closest answer. Solve, (a) $22,371 (b) $50,628 (c) $7,371 (d) −$1,000 Machine A was purchased three years ago for $10,000 and had an estimated MV of $1,000 at the end of its 10-year life. Annual operating costs are $1,000. The machine will perform satisfactorily for the next seven
years. A salesperson for another company is offering Machine B for $50,000 with an MV of $5,000 after 10 years. Annual operating costs will be $600. Machine A could be sold now for $7,000, andMARR is 12% per year. Use this information to answer, Using the outsider viewpoint, what is the EUAC
of continuing to use Machine A? Choose the closest answer. (a) $1,000 (b) $2,182 (c) $2,713 (d) $901 (e) $2,435.
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