Question: A? high-speed electronic assembly machine was purchased two years ago for? $50,000. At the present? time, it can be sold for ?$27,000 and replaced by
A? high-speed electronic assembly machine was purchased two years ago for? $50,000. At the present? time, it can be sold for ?$27,000 and replaced by a newer model having a purchase price of ?$43,500?; or it can be kept in service for a maximum of one more year. The new assembly? machine, if? purchased, has a useful life of not more than two years. If the? before-tax MARR is 12%, when should the old assembly machine be? replaced? Use the following data table for your analysis.

1. What is the minimum EUAC value of the challenger?
2. What is the marginal cost of keeping the defender in service for one more year?
3. The old assembly machine should be replaced : a) immediately, b) in one year ?
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