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 (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 9% per year. Determine the replacement value. Machine >X Machine Y 85,000 40,000 for year 1,increasing by 2000 per Market Value, $ Annual Cost, $ per Year Salvage Value 57,000 year thereafter 14,500 19,000- Life, Years 5 The replacement value is $
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