Question: need help in urgent. plz help Task 2 (Replacement Analysis - Defender/Challenger Scenario) Hadeel Majan Industries purchased a machine 3 years ago for a cost

need help in urgent. plz help Task 2 (Replacement

need help in urgent. plz help

Task 2 (Replacement Analysis - Defender/Challenger Scenario) Hadeel Majan Industries purchased a machine 3 years ago for a cost of RO 25000 to be useful for 8 years. Its salvage value at the end of its life would be RO 2500. The machine has an annual maintenance cost of RO 1875. Presently the machine has a market value of RO 15000. The company has a plan to upgrade the manufacturing facility by replacing the existing machine with a new machine. The new machine is available for RO 18750 and could be used for a 5-year period and will have an annual maintenance cost of RO 1500. The salvage value of the new machine will be RO 2812.5. Using an interest rate of 11%, find whether it is worth replacing the present machine with the new machine. Use Annual Equivalent Cost for comparison

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