A commercial 3D printer is purchased for $300,000. The salvage value of the printer decreases by 40% each year that it is held. The cost to operate and maintain the machine the first year it is used is $12,500; these costs increase by $5,000 each year. What is the optimal replacement interval (in years) and minimum EUAC for the printer, assuming a MARR of 12% is used?
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A commercial 3D printer is purchased for $300,000. The salvage value of the printer decreases by 40% each year that it is held. The cost to operate and maintain the machine the first year it is used is $12,500; these costs increase by $5,000 each year. What is the optimal replacement interval (in years) and minimum EUAC for the printer, assuming a MARR of 12% is used?
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- A commercial 3D printer is purchased for $ 380,000. The salvage value of the printer decreases by 35% each year that it is held. The cost to operate and maintain the machine the first year it is used is $ 12,500; these costs increase by $ 4,000 each year. What is the optimal replacement interval and minimum EUAC for the printer, assuming a MARR of 10% is used?A certain equipment costs P7,000 has an economic life of n years and a salvage value P350 at the end of n years. If the book value at the end of 4 years is equal to P2197.22, compute for the economic life of the equipment using the sum of years digit method.A machine that has been used for 8 years has a market value of $2,500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Answer the questions: a) How much is the loss in market value in year 2? b) How much is the loss in interest in year 2? c) What is the Marginal Cost in year 2? d) If the machine's minimum EUAC is $5,500, when, in years, should the machine be replaced?
- 8 years ago a company installed a robot that today has a market value of $ 60,000 and each year it drops $ 2000. For example, at the end of the first year the market value will be $ 58,000 and so it continues to decline. Maintenance costs for the next 4 years are estimated at $ 3000 this year and increasing 10% each year. Determine the marginal cost of extending the service for one year, for the next 4 years if the MARR is 12%. Fill in the blanks with the results. Calculate: a) The loss of market value in year 1 is $ b) Loss in interest in year 1 $ c) The Marginal Cost in year 1 is Show all the procedure for your answer thank youAn $80,000 baling machine for recycled paper was purchased by the XYZ company two years ago. The current MV of the machine is $50,000, and it can be kept in service for seven more years. MARR is 12% per year and the projected net annual receipts (revenues less expenses) and end-of-year market values for the machine are shown below. When is the best time for the company to abandon this project? END OF YEAR 1 2 3 4 5 6 7 Net annual receipts $20,000 $20,000 $18,000 $15,000 $12,000 $6,000 $3,000 Market value 40,000 32,000 25,000 20,000 15,000 10,000 5,000Machine A was purchased last year for $19,500 and had an estimated MV of $3,500 at the end of its seven-year life. Annual operating costs are $2,100. The machine will perform satisfactorily over the next six years. A salesman for another company is offering a replacement, Machine B, for $13,700, with an MV of $1,300 after six years. Annual operating costs for Machine B will only be $1,300. A trade-in allowance of $9,600 has been offered for Machine A. If the before-tax MARR is 6% per year, should you buy the new machine? Machine A was purchased last year for $19,500 and had an estimated MV of $3.500 at the end of its seven year life. Annual operating costs are $2,100. The machine will perform satisfactorily over the next six years. A salesman for another company is offering replacement, Mlachine 0, for $13,.700. with an MV of $1,300 aller six years. Arnual operaling cosls for Machine B will only be $1 300. A trade-in allowance of $9,600 has…
- You are evaluating two different silicon wafer milling machines. The Techron I costs $228,000, has a three-year life, and has pretax operating costs of $59,000 per year. The Techron II costs $400,000, has a five-year life, and has pretax operating costs of $32,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $36,000. If your tax rate is 24 percent and your discount rate is 8 percent, compute the EAC for both machines. Note: Your answer should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.A certain equipment costs P X now and has a salvage value of P 40,000 at the end of 23,000 hours of use. In the first year of service, it was used for 7,000 hours. Find X if the book value of the equipment after the 1st year is P 360,000.An existing robot can be kept if $2,000 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. The following estimates have been developed for both the defender and challenger. The company?s before-tax MARR is 20% per year. Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time. (Hint: Use the AW method)
- The economic service life of an asset is the number of years at which the EUAC is _____________. a) minimum b) maximum c) equal to 1 d) equal to 0A machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the purchase, it was expected to be used for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. However, last year, it incurred a cost $38,000, which is expected to escalate to $39,300 this year and increase by $1,300 each year thereafter. The market value is now estimated to be $81,000–$10,000k, where k is the number of years since the machine was purchased. It is now estimated that the machine will be useful for a maximum of 6 more years. A replacement study is to be performed. Determine the values of P, n, AOC for year 6 and S of this defender. The value of P is $ _______ . The value of n is_______ years. The AOC for year 6 is______ . The value of S is $______ .An industrial plant bought a generator set for P89,663. Other expenses including installation amounted to P9,618. The generator set is to have a life of 17 years with a salvage value at the end of life of P6,667. Determine the book value at the end of 9 years by the sinking fund method at 12.36%.