With the estimates shown below, Sarah needs to determine the trade in (replacement) value of machine X
Question:
(a) By hand solution,
(b) Using a spreadsheet.
Transcribed Image Text:
Machine X Machine Y Market value, $ 80,000 Annual cost, $ per year -40,000 year 1, increasing by 2000 -60,000 per year thereafter Salvage value, $ 15,000 20,000 Life, years 3
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