Question: *Two systems are under consideration. The relevant costs for each system are known or estimated (see table below). Use an interest rate of 6% per

*Two systems are under consideration. The relevant costs for each system

*Two systems are under consideration. The relevant costs for each system are known or estimated (see table below). Use an interest rate of 6% per year to determine the minimum resale price (RV) needed to make the challenger a better economic choice now. Calculations based on interest factors with 5 decimal places. Current System New System Remaining life, (years) Current market value, ($) AOC, ($ per year) Future salvage, (S) AW New System, ($ per year) 50,000 -100,000 0 -195,000 RV= $389,520 RV= $400,168 RV= $1,242,628 ORV= $821,411

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