Question: Replacement Analysis BTCF ( 1 5 ptos ) Machine A was purchased five years ago for $ 1 4 , 0 0 0 and had
Replacement Analysis BTCF ptos
Machine A was purchased five years ago for $ and had an estimated market value of $ at the end of its year life. Annual operating costs are $ The machine will perform satisfactorily for the next five years. A salesman for another company is offering machine for $ with a market value of $ after years. Annual operating costs will be $ Machine A could be sold now for MVo $ and the MARR is per year.
a Using the outsider viewpoint, what is the annual worth AW of continuing to use Machine
b Using the outsider viewpoint, what is the annual worth AW of buying Machine B
c Should Machine A be replaced with Machine B
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