Question: With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of

With the estimates shown below, Sarah needs to determine the trade-in

With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 10% per year. Determine the replacement value. Machine X Market Value, $ Annual Cost, $ per year -60,500 Machine Y 93,000 - 40,000 for year 1, increasing by 2000 per year thereafter. 16,000 5 Salvage Value Life, Years 12,500 3 The replacement value is $ 56143.84

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