The replacement of a planning machine is being considered by the Reardom Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will c0st $30.000 for installation and will have an estimated economic life of 12 years and a $2.000 MV at that time. It is estimated that an expenses will average $16,000 per year. The defender has a present BV of $6.000 and a present MV of $4000. Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now. Year MV at End of BV at End of Expenses during the Year $20.000 25.000 30.000 Year $3.000 2.500 2.000 Year $4.500 2. 3. 3,000 1,500 O Click the icon to view the interest and annuity table for discrete compounding when i 15% per year. Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year EUAC 2 3
The replacement of a planning machine is being considered by the Reardom Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will c0st $30.000 for installation and will have an estimated economic life of 12 years and a $2.000 MV at that time. It is estimated that an expenses will average $16,000 per year. The defender has a present BV of $6.000 and a present MV of $4000. Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now. Year MV at End of BV at End of Expenses during the Year $20.000 25.000 30.000 Year $3.000 2.500 2.000 Year $4.500 2. 3. 3,000 1,500 O Click the icon to view the interest and annuity table for discrete compounding when i 15% per year. Fill in the table for the EUAC values for the defender for years 1-3. (Round to the nearest dollar.) Year EUAC 2 3
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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All is calculated i need only last EUAC calculation
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