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
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Chapter1: Making Economics Decisions
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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. The
best 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 costs
of 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.)
Year
Marginal Costs of the Defender
2
3.
The replacement should be made
OA after 1 years
B. after 2 years
C. after 3 years
D. now
Transcribed Image Text: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. The best 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 costs of 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.) Year Marginal Costs of the Defender 2 3. The replacement should be made OA after 1 years B. after 2 years C. after 3 years D. now
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