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Business, 25.11.2021 05:20 amoakoh800003

A presently owned machine can last for three more years, if properly maintained at a cost of $15,000 per year. Its operating cost will be $31,000 per year. After three years, it can be sold for an estimated $9000. A replacement costs $80,000 with a $10,000 salvage value after three years and an operating cost of $19,000 per year. Different vendors have offered $10,000 and $20,000, respectively, for the current system in trade for the replacement. At 12% per year interest, perform a replacement study for the two trade-in offers.

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A presently owned machine can last for three more years, if properly maintained at a cost of $15,000...
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