Question: Your, assignment t is to prepare a ATCF replacement analysis study. Defender The actual machine was installed 2 years ago at a cost $80,000. The
Your, assignment t is to prepare a ATCF replacement analysis study. Defender The actual machine was installed 2 years ago at a cost $80,000. The actual machine has a life of 6 years (when was installed). Now it has a market value of $60,000. If kept has an economic life of four (4) years and a salvage value of $10,000. Annual operating and maintenance cost of $12,000. For depreciation use straight-line method. (Classical). Challenger A new machine is under consideration: it will cost $90,000 and have annual operating and maintenance cost of $9,000. The new machine has an economic life of 10 years and a salvage value of $10,000. Use for depreciation Conventional straight-line method (classical)
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