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

 With the estimates shown below, Sarah needs to determine the tradein

With the estimates shown below, Sarah needs to determine the tradein (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, $ ? 88,000 | Annual Cost, $ per Year 58,500 40,000 for year 1,increasing by 2000 per year thereafter. | Salvage Value 17,500 22,000 |

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