The annual cost (annual cost) of the loader, which is still used in Demir naat, has been

The annual cost (annual cost) of the loader, which is still used in Demir İnşaat, has been calculated as  $63,000 (initial investment, operation, residual value, etc.). Replacing this machine is on the agenda. The initial cost of the new loader to be purchased is $64,000 and it is stated that there will be an annual expense of $38,000 for 3 years following the purchase. The 3 expert engineers working in the company differ about the remaining value of the machine at the end of the 3rd year

Does the different calculated residual value estimates at the end of the 3rd year of the new machine to be purchased affect the idea of changing the machine? Why is that? [Capital cost is 15%]

Answer rating: 100% (QA)

The estimated residual value of the new machine at the end of the 3rd year can potentially affect the decision of whether to change the machine or not ... View the full answer