Suppose we are thinking about replacing an old computer with a new one. The old one cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose we are thinking about replacing an old computer with a
new one. The old one cost us $; the new one will cost
$ The new machine will be depreciated straightline to
zero over its fiveyear life. It will probably be worth about
$ after five years.The old computer is being depreciated at a rate of $ per
year. It will be completely written off in three years. If we dont
replace it now, we will have to replace it in two years. We can
sell it now for $; in two years, it will probably be worth
$ The new machine will save us $ per year in
operating costs. The tax rate is percentand the discount
rate is percent.Calculate the EAC for the old computer and the new
computer.A negative answer should be indicated by a
minus sign.Do not round intermediate
calculations and round your answers to decimal places, eg
What is the NPV of the decision to replace the computer
now?A negative answer should be indicated by a minus
sign.Do not round intermediate calculations
and round your answer to decimal places, eg
Posted Date: