A material handling system was purchased 3 years ago for $120731. Two years ago it required...

 

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A material handling system was purchased 3 years ago for $120731. Two years ago it required substantial upgrading at a cost of $15225. It once again is requiring an upgrading cost of $24583. Alternately, a new system can be purchased today at a cost of $189402, with a salvage value of $21008. The existing machine could be sold today for $51649. In an economic replacement analysis, what first cost should be assigned to the existing system? Enter your answer as follow: 123456.78 A material handling system was purchased 3 years ago for $120731. Two years ago it required substantial upgrading at a cost of $15225. It once again is requiring an upgrading cost of $24583. Alternately, a new system can be purchased today at a cost of $189402, with a salvage value of $21008. The existing machine could be sold today for $51649. In an economic replacement analysis, what first cost should be assigned to the existing system? Enter your answer as follow: 123456.78

Answer rating: 100% (QA)

To perform an economic replacement analysis we need to calculate the equivalent present worth of the ... View the full answer