Question: A company is considering replacing a machine that was bought five years ago for $50,000. The?machine, however, can be repaired and its life extended four


A company is considering replacing a machine that was bought five years ago for $50,000. The?machine, however, can be repaired and its life extended four more years. If the current machine is?replaced, the new machine will cost ?$43,000 and will reduce the operating expenses by $5,300 per year. The seller of the new machine has offered a?trade-in allowance of ?$14,500 for the old machine. If MARR is 9?% per year before?taxes, how much can the company spend to repair the existing?machine?


A company is considering replacing a machine that was bought five years ago for $50,000. The machine, however, can be repaired and its life extended four more years. If the current machine is replaced, the new machine will cost $43,000 and will reduce the operating expenses by $5,300 per year. The seller of the new machine has offered a trade-in allowance of $14,500 for the old machine. If MARR is 9% per year before taxes, how much can the company spend to repair the existing machine? Click the icon to view the interest and annuity table for discrete compounding when MARR = 9% per year. Choose the closest answer below. O A. $45,670 O B. $7,300 O C. $25,830 O D. $11,330More Info - X Discrete Compounding; i=9% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N F/P P/F F/A P/A A/F A/P 1.0900 0.9174 1.0000 0.9174 1.0000 1.0900 1.1881 0.8417 2.0900 1.7591 0.4785 0.5685 1.2950 0.7722 3.2781 2.5313 0.3051 0.3951 1.4116 0.7084 4.5731 3.2397 0.2187 0.3087 1.5386 0.6499 5.9847 3.8897 0.1671 0.2571 1.6771 0.5963 7.5233 4.4859 0.1329 0.2229 1.8280 0.5470 9.2004 5.0330 0.1087 0.1987 1.9926 0.5019 11.0285 5.5348 0.0907 0.1807 2.1719 0.4604 13.0210 5.9952 0.0768 0.1668 10 2.3674 0.4224 15.1929 6.4177 0.0658 0.1558 Print Done
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