Question: Please explain the final answer. A material handling system was purchased 3 years ago for $123,816. Two years ago it required substantial upgrading at a

Please explain the final answer.

A material handling system was purchased 3 years ago for $123,816. Two years ago it required substantial upgrading at a cost of $16,340. It once again is requiring an upgrading cost of $24,254. Alternately, a new system can be purchased today at a cost of $200,688, with a salvage value of $19,120. The existing machine could be sold today for $49,996.

In an economic replacement analysis, what first cost should be assigned to the existing system?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. RR must build a tunnel to maintain his access around the mountain. The tunnel could be fabricated of normal steel for an initial cost of $30,000 and should last for 12 years. Maintenance will cost...

A material handling system was purchased 3 years ago for $116866. Two years ago it required substantial upgrading at a cost of $13319. It once again is requiring an upgrading cost of $26056...

8.2.2) A material handling system was purchased 3 years ago for $123816. Two years ago it required substantial upgrading at a cost of $16340. It once again is requiring an upgrading cost of $24254....

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....

A material handling system was purchased 3 years ago for $111456. Two years ago it required substantial upgrading at a cost of $14621. It once again is requiring an upgrading cost of $24248....

8.7) A material handling system was purchased 3 years ago for $127186. Two years ago it required substantial upgrading at a cost of $15524. It once again is requiring an upgrading cost of $24105....

Please do not copy from Chegg otherwise i have to report your answer. A material handling system was purchased 3 years ago for $123,816. Two years ago it required substantial upgrading at a cost of...

1.RR must build a tunnel to maintain his access around the mountain. The tunnel could be fabricated of normal steel for an initial cost of $45,000 and should last for 15 years. Maintenance will cost...

A material handling system was purchased 3 years ago for $123,816. Two years ago it required substantial upgrading at a cost of $16,340. It once again is requiring an upgrading cost of $24,254....

Questions based on the book The Ascent of Money by Niall Ferguson. 1. What did you learn from reading The Ascent of Money by Niall Ferguson? 2. What has been the role of the housing market according...

Required information [The following information applies to the questions displayed below.] The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and...

What is the expected return on this stock given the following information? State of the EconomyProbabilityE ( R ) Boom . 4 1 5 % Recession . 6 2 0 %

Introduction to Samsung

Cognitive ability tests seem to be the most valid selection devices available for hiring employees, yet they also have adverse impact against blacks and Hispanics. Given the validity and adverse...

Health and safety legislation shows no sign of abating. Debate whether you consider that excessive legislation merely creates confusion and bureaucracy and makes it more diffi cult for businesses to...

In focus on research 11.4, what evidence is there for the convergence of Western and Japanese cultures? Discuss what implications any convergence may have for other HRM practices in Japan.