Big-J Construction Company, Inc. is conducting a routine periodic review of existing field equipment. They use a MARR of

[answerhappygod]

Big J Construction Company Inc Is Conducting A Routine Periodic Review Of Existing Field Equipment They Use A Marr Of 1 (76.28 KiB) Viewed 25 times

Big-J Construction Company, Inc. is conducting a routine periodic review of existing field equipment. They use a MARR of 20%. This includes a replacement evaluation of a paving machine now in use. The machine was purchased 5 years ago for $200,000, the paver's current market value is $65,000, and yearly operating and maintenance costs are as follows. Data for a new paving machine have been analyzed. Its most economic life is at 8 years, with a minimum EUAC of $62,000. When should the existing paving machine be replaced? Year, n 2 3 5 Operating Costs in Maintenance Cost Market Value if year n in year n sold in Year n 17,000.00 20,000.00 25,000.00 30,000.00 35,000.00 12,000.00 18,000.00 20,000.00 25,000.00 30,000.00 50,000.00 40,000.00 35,000.00 30,000.00 25,000.00 O The minimum EUAC of new asset is exceeded in year 5 of the existing asset, replace at year 5. The minimum EUAC of new asset is exceeded in year 4 of the existing asset, replace at year 4. The minimum EUAC of new asset is exceeded in year 2 of the existing asset, replace at year 2. O The minimum EUAC of new asset is exceeded in year 3 of the existing asset, replace at year 3.