Question: A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $23,000 or it can

A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $23,000 or it can be kept in service for one more year with cash flows as shown in the table (defender). The potential challenger to replace this machine has a purchase price of $40,000 and a usefule life of not more than 2 years with cash flows as shown in the table. If the before-tax MARR is 12%, answer the two questions below: Challenger Defender Year Market Value O&M Costs Market Value O&M Costs O $40,000 $23,000 32,000 $10,500 17,000 $13,500 N 23,000 14,500 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. 1. The EUAC of the challenger for the two years of service is - X More Info Discrete Compounding; /= 12% Single Payment Uniform Series Compound Compound Capital Amount Present Amount Present Sinking 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 2. The marginal cost of keeping the defender in service for one more year is FIP PIF FIA PIA AIF AIP 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 JAWN- Z 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 Print Done
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