Machine X has been used for 12 years and currently has a book value of $24,000. a decision must be made concerning the most economic action to take: keep X, replace X with Y or replace X with Z. A before-tax analysis is to be performed. If machine X is continued in service, it can be used for 12 years and scrapped at zero value. Annual operating and maintenance costs will equal to $80,000. If machine X is replaced with machine Y, a trade-in allowance of $24,000 will be provided for X. The original purchase price for Y, excluding the trade-in allowance, is $150.000. At the end of the 12 year planning horizon, Y will have a salvage value of 20000. Annual operating and maintenance costs will total $60,000. If machine X is replaced with machine Z, no trade-in allowance will be provided for X. The purchase price for Z is $180,000. At the end of the 12-year planning horizon, Z will have a salvage value of $40,000. Annual operating and maintenance costs will total $50.000. Using a MARR of 10% and a before-tax analysis, determine the preferred course of action.

use excell for analysis