Question: Razorback Corp. is evaluating whether it should keep its automatic guided vehicle or sell it immediately and purchase a new one. The current vehicle can

 Razorback Corp. is evaluating whether it should keep its automatic guided

Razorback Corp. is evaluating whether it should keep its automatic guided vehicle or sell it immediately and purchase a new one. The current vehicle can be sold for $28,000 now; however, with an overhaul of $8250, the current vehicle can last another 5 years. Other relevant costs are shown below. Use a before-tax MARR of 5% per year and determine whether the current vehicle should be replaced. Defender Challenger 34,250, 5 years ago 38,250 Capital investment, $ 5500 7800 Annual operating expenses, $ 10 12 Useful life, years 2500 5500 Estimated salvage value at the end of useful life

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