With the estimates shown below, Sarah needs to determine the trade in (replacement) value of machine X

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With the estimates shown below, Sarah needs to determine the trade in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 8% per year. Determine the RV

(a) By hand solution,

(b) Using a spreadsheet.

Machine X Machine Y Market value, $ 80,000 Annual cost, $ per year -40,000 year 1, increasing by 2000 -60,000 per year t

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 26, 2018 07:13 AM

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With the estimates shown below, Sarah needs to determine the trade in (replacement) value of machine X

Question:

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

Step by Step Answer:

a By hand RVAP83 60000 15000AF83 80000AP85 40000 2000AG8...View the full answer

Engineering Economy

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