Question Viewer Single Payment Compound Amount Present Present Discrete Compounding; ¡= 12% Uniform Series Compound Amount Sinking Fund Capital Recovery Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N FIP PIF FIA ΡΙΑ A/F AIP 1 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 2345 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $27,000 and replaced by a newer model having a purchase price Question Viewer 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 12%, when should the old assembly machine be replaced? Use the following data table for your analysis. Challenger Year 0 Market Value O&M Costs $43,500 1 33,000 $9,000 2 27,000 13,000 Defender Market Value O&M Costs $27,000 17,500 $14,500

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
The minimum EUAC value of the challenger is
​(Round to the nearest​ dollar.)
Part 2
The marginal cost of keeping the defender in service for one more year is
​(Round to the nearest​ dollar.)
 
Question Viewer
Single Payment
Compound
Amount
Present
Present
Discrete Compounding; ¡= 12%
Uniform Series
Compound
Amount
Sinking
Fund
Capital
Recovery
Factor
Worth Factor
Factor
Worth Factor
Factor
To Find F
To Find P
To Find F
To Find P
Given P
Given F
Given A
Given A
Given F
To Find A
Factor
To Find A
Given P
N
FIP
PIF
FIA
ΡΙΑ
A/F
AIP
1
1.1200
0.8929
1.0000
0.8929
1.0000
1.1200
2345
1.2544
0.7972
2.1200
1.6901
0.4717
0.5917
1.4049
0.7118
3.3744
2.4018
0.2963
0.4163
1.5735
0.6355
4.7793
3.0373
0.2092
0.3292
1.7623
0.5674
6.3528
3.6048
0.1574
0.2774
Transcribed Image Text:Question Viewer Single Payment Compound Amount Present Present Discrete Compounding; ¡= 12% Uniform Series Compound Amount Sinking Fund Capital Recovery Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N FIP PIF FIA ΡΙΑ A/F AIP 1 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 2345 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774
A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $27,000 and replaced by a newer model having a purchase price
Question Viewer 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
12%, when should the old assembly machine be replaced? Use the following data table for your analysis.
Challenger
Year
0
Market Value
O&M Costs
$43,500
1
33,000
$9,000
2
27,000
13,000
Defender
Market Value
O&M Costs
$27,000
17,500
$14,500
Transcribed Image Text:A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $27,000 and replaced by a newer model having a purchase price Question Viewer 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 12%, when should the old assembly machine be replaced? Use the following data table for your analysis. Challenger Year 0 Market Value O&M Costs $43,500 1 33,000 $9,000 2 27,000 13,000 Defender Market Value O&M Costs $27,000 17,500 $14,500
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