Question 1:In a replacement analysis for a vacuum seal on aspacecraft, the following data are known about the challenger: the initial investment is $11,500; there is no annual maintenance cost for the first three years, however, it will be $1,500 in each of years four and five, and then $4,000 in the sixth year and increasing by $3,300 each year thereafter. The salvage value is $0 at all times, and MARR is 9% per year. What is the economic life of this challenger?

Below is the interest and annuity table for discrete compounding when the MARR is 9% per year.

Question 2:

The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $25,000 for installation and will have an estimated economic life of 14 years and a $2,200 MV at that time. It is estimated that annual expenses will average $15,000 per year. The defender has a present BV of $5,000 and a present MV of $2500. Data for the defender for the next three years are given below. Using a before-tax interest rate of 15% per year, make a comparison to determine whether it is economical to make the replacement now.

What is the EUAC of the Challenger in $?

Should the present machine immediately?

Below is the the interest and annuity table for discrete compounding whenis equals=15% per year.

Thank you.

3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 4.7716 5.018 5.2337 5.4206 5.5831 5.7245 5.8474 0.0596 10.0493 0.0411 0.0345 10.0291 0.0247 0.0210 0.2096 0.1993 0.1911 10.1845 10.1791 10.1747 0.1710