Sh27 A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $25,000 or it can be kept in service for one more year with cash flows as shown in thetable (defender). The potential challenger to replace this machine has a purchase price of $41,500 and a usefule life of not more than 2 years with cash flows as shown in the table. If the before-tax MARR is 20%, answerthe two questions below:Market Value$41.50034,000$9,00014,50025,000Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year.1. The EUAC of the challenger for the two years service isOA. $29,760OB. $30,300OC. $27,300OD. $24,800OE. $36,065Year012Challenger2. The marginal cost of keeping the defender in service for one more year isOA. $29,000OB. $24,000OC. $33,000O D. $11,400OE. $13,000O&M CostsDefenderMarket Value$25,00017,000O&M Costs$16,000

Capital budgeting refers to the planning method used to calculate whether a firm's long-term capital…

A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $25,000 or it can be kept in service for one more year with cash flows as shown in the table (defender). The potential challenger to replace this machine has a purchase price $41,500 and a usefule life of not more than 2 years with cash flows. shown in the table. If the before-tax MARR is 20%, answer the two questions below: Market Value $41.500 $9,000 34,000 25,000 14.500 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year. 1. The EUAC of the challenger for the two years service is OA. $29,760 OB. $30,300 OC. $27,300 OD. $24,800 OE. $36,065 Challenger Year 0 1 2 O&M Costs CLIEN Defender Market Value $25,000 17,000 O&M Costs $16,000