Four years ago, an industrial batch oven was purchased for $23,000 It has been depreciated over a 10 year life and has a $1,000 salvage value If sold now, the machine will bring $2,000 If sold at the end of the year, it will bring $1,500 Annual operating costs for subsequent years are $3,800 A new ...

For the challenger we have AEC C 50000AP 14 12 3000 6000 ...

Four years ago, an industrial batch oven was purchased for $23,000. It has been depreciated over a

Question:

Four years ago, an industrial batch oven was purchased for $23,000. It has been depreciated over a 10-year life and has a $1,000 . If sold now, the machine will bring $2,000. If sold at the end of the year, it will bring $1,500. Annual operating costs for subsequent years are $3,800. A new machine will cost $50,000 with a 12-year life and have a $3,000 . The operating cost will be $3,000 as of the end of each year with $6,000-per-year savings due to better quality control. If the firm's is 14%, should the machine be purchased now?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...