You own several copiers that are currently valued at $11,000, combined. Annual operating and maintenance costs for all copiers are estimated at $8,000 next year, increasing by 10 percent each year thereafter. Salvage values decrease at a rate of 20 percent per year. You are considering replacing your existing copiers with new ones that have a suggested retail price of $26,000. Operating and maintenance costs for the new equipment will be $6,000 over the first year, increasing by 10 percent each year thereafter. The salvage value of the new equipment is well approximated by a 20 percent drop from the suggested retail price per year. Furthermore, you can get a trade-in allowance of $12,000 for your equipment if you purchase the new equipment at its suggested retail price. Your MARR is 8 percent. Should you replace your existing equipment now? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 8%. The economic life of the existing equipment is equipment, which has an economic life of equipment now. (Round to the nearest whole number as needed.) year(s) with a total EAC of $ year(s) and a total EAC of $ You This is a total EAC than the new replace your existing

You own several copiers that are currently valued at $11,000, combined. Annual operating and maintenance costs for all copiers are estimated at $8,000 next year, increasing by 10 percent each year thereafter. Salvage values decrease at a rate of 20 percent per year. You are considering replacing your existing copiers with new ones that have a suggested retail price of $26,000. Operating and maintenance costs for the new equipment will be $6,000 over the first year, increasing by 10 percent each year thereafter. The salvage value of the new equipment is well approximated by a 20 percent drop from the suggested retail price per year. Furthermore, you can get a trade-in allowance of $12,000 for your equipment if you purchase the new equipment at its suggested retail price. Your MARR is 8 percent. Should you replace your existing equipment now? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 8%. The economic life of the existing equipment is equipment, which has an economic life of equipment now. (Round to the nearest whole number as needed.) year(s) with a total EAC of $ year(s) and a total EAC of $ You This is a total EAC than the new replace your existing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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