Question: A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $26,000 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 $26,000 and

replaced by a newer model having a purchase price of $40,000; orit can be kept in service for a maximum of one more

A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $26,000 and replaced by a newer model having a purchase price of $40,000; 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 20%, when should the old assembly machine be replaced? Use the following data table for your analysis. Challenger Defender Year Market Value O&M Costs Market Value O&M Costs $40,000 $26,000 N - O 30,000 $10,000 16,500 $16,000 26,000 12,500 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year. The minimum EUAC value of the challenger is $ . (Round to the nearest dollar.) The marginal cost of keeping the defender in service for one more year is $ . (Round to the nearest dollar.) The old assembly machine should be replaced immediatelyi More Info - X Discrete Compounding; i= 20% Single Payment Uniform Series JA Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery st d 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 ly n Given F Given A Given A Given F Given P N FIP PIF FIA PIA A/F AIP 1.2000 0.8333 1.0000 0.8333 1.0000 1.2000 1.4400 0.6944 2.2000 1.5278 0.4545 0.6545 U A W N - 1.7280 0.5787 3.6400 2. 1065 0.2747 20.4747 2.0736 0.4823 5.3680 2.5887 0. 1863 0.3863 2.4883 0.4019 7.4416 2.9906 0. 1344 0.3344 Print Done

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