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 of $44,000; or it canbe 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%, answer the following two questions:ChallengerO&M CostsYearMarket Value0$44,0001234,00027,000Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year.$12,00013,000DefenderMarket Value$27,00019,000O&M Costs$14,0001. The minimum EUAC value of the challenger is○ A. $30,390B. $25,771○ C. $30,554D. $27,280○ E. $24,0802. The marginal cost of keeping the defender in service for one more year isOA. $33,000B. $25,240C. $10,280OD. $11,240O E. $22,000

The objective of the question is to calculate the minimum Equivalent Uniform Annual Cost (EUAC)…

Answered: A high-speed electronic assembly…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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