A present asset (defender) has a current market value of $83,000. Estimated market values at the end of the next three years are MV, = $74,000, MV, = $59,000,MV = $39,000. The corresponding annual expenses are $16,700, $17,400, and $18,200 for years 1, 2 and 3, respectively. The before-tax MARR is 12% per year. Thebest challenger has an economic life of 5 years and its associated EUAC is $41,395. Based on this information and a before-tax analysis, what are the marginal costsof the defender each year and when should you plan to replace the defender with the challenger?Click the icon to view the interest and annuity table for discrete compounding when MARR = 12% per year.Fill the table below. (Round to the nearest dollar.)YearMarginal Costs of the Defender23.The replacement should be madeOA after 1 yearsB. after 2 yearsC. after 3 yearsD. now

In financial aspects, the marginal expense is the adjustment of the absolute expense that emerges…

lenger has an economic life of 5 years and its associated EUAC is $41,395. Based on this information and a before-tax analysis, what fender each year and when should you plan to replace the defender with the chalenger? k the icon to view the interest and annulty table for discrete compounding when MARR = 12% per year. able below. (Round to the nearest dollar.) Year Marginal Costs of the Defender 2. 3. lacement should be made 相明

lenger has an economic life of 5 years and its associated EUAC is $41,395. Based on this information and a before-tax analysis, what fender each year and when should you plan to replace the defender with the chalenger? k the icon to view the interest and annulty table for discrete compounding when MARR = 12% per year. able below. (Round to the nearest dollar.) Year Marginal Costs of the Defender 2. 3. lacement should be made 相明

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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