Two systems are under consideration The relevant costs for each system are known or estimated (see table below) Use an interest rate of 12 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 RV $342,453 RV $400,168 RV $382,060 RV $522,692 Remaining life, years) Current market value, $0 AOC, per year) Future salvage, AWNew system, (S per year) Current System 50,000 100,000 New System 195,000 Remaining life, years) Current market value, $0 AOC, per year) Future salvage, AWNew system, (S per year) Current System 50,000 100,000 New System 195,000

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Question: Two systems are under consideration. The relevant costs for each system are known or estimated (see table below). Use an interest rate of 12% per

Two systems are under consideration. The relevant costs for each system are known or estimated (see table below). Use an interest rate of 12% 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.

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

	RV= $342,453
	RV= $400,168
	RV= $382,060
	RV= $522,692

Remaining life, years) Current market value, $0 AOC, per year) Future salvage, AWNew system, (S per year) Current System 50,000 100,000 New System 195,000 Remaining life, years) Current market value, $0 AOC, per year) Future salvage, AWNew system, (S per year) Current System 50,000 100,000 New System 195,000

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