A machine was purchased two years ago at a cost of Rs. 2,00,000 to be useful for

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A machine was purchased two years ago at a cost of Rs. 2,00,000 to be useful for eight years with salvage value at the end of its life as Rs. 25,000. The annual maintenance cost is Rs. 25,000. The market value of the present machine is Rs. 1,20,000. Now, a new machine to cater to the need of the present machine is available at Rs. 1,50,000 to be useful for six years. Its annual maintenance cost is Rs. 14,000. The salvage value of the new machine at the end of its life is estimated to be Rs. 20,000. Using an interest rate of 12%, the decision regarding replacing the present machine with the new machine will be to.

Posted Date: Sep 13, 2021 09:32 AM

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A machine was purchased two years ago at a cost of Rs. 2,00,000 to be useful for

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