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 13% per year. Determine the replacement value. Machine X Machine Y Market Value, $ Annual Cost, $ per Year Salvage Value 82,000 40,000 for year 1,increasing by 2000 per year thereafter 19,000 5 -55,500 12,500 3 Life, Years The replacement value is $

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