Question: Your, assignment t is to prepare a ATCF replacement analysis study. Defender The actual machine was installed 2 years ago at a cost of $80,000.
Your, assignment t is to prepare a ATCF replacement analysis study. Defender The actual machine was installed 2 years ago at a cost of $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 SL-ADS 3 years property class and recovery period. 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 $20,000. Use for depreciation conventional straight-line method. For both machines use income tax rate of 40%.and MARR of 6% Set up a table for the computation of ATCF for defender and using challenger PW determines whatever replacement can be made or not. Remember Challenger table is all ready done
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
