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A machine purchased 9 years ago for $45,000 is expected to have the salvage values and operating costs as shown below. I
Posted: Mon Apr 18, 2022 9:22 am
by answerhappygod
- A Machine Purchased 9 Years Ago For 45 000 Is Expected To Have The Salvage Values And Operating Costs As Shown Below I 1 (120.42 KiB) Viewed 17 times
A machine purchased 9 years ago for $45,000 is expected to have the salvage values and operating costs as shown below. It can be disposed of now at a market value of $8,000. A replacement machine will cost $125,000 and will have a $10,000 salvage value after its 10-year life. Its annual operating cost is expected to be $31,000. At an interest rate of 15% per year, determine how many more years, if any, the
company should retain the existing machine Year Salvage Value at End of Year, $ Operating Cost, $/Year 1 2 3 6,000 4,000 1,000 50,000 53,000 60,000