11.041 Replacement Value 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 10% per year. Determine the replacement value. Market Value, $ Annual Cost, $ per Year Salvage Value Life, Years The replacement value is $ --53616.38 Machine X ? -55,000 24,500 3 Machine Y 81,000 -40,000 for year 1,Increasing by 2000 per year thereafter. 18,000 5 Problem 13.027: Calculate the number of production units in a particular year to break even costs between two processes Process X is estimated to have a fixed cost of $30,000 per year and a variable cost of $60 per unit in year 1, decreasing by $5 per unit per year thereafter. Process Y will have a fixed cost of $67,000 per year and a variable cost of $10 per unit in year 1, Increasing by $1 per unit per year thereafter. At an Interest rate of 12% per year, how many units must be produced in year 7 for the two processes to break even? The number of units that must be produced is determined to be