For a replacement analysis, the cost of a challenger is $(10,000 + D8 × 100) and the currentmarket value of the defender is $(2,000 + D8 × 50). Given that the MARR is 10% per year.The market values (MV) and the annual operating and maintenance costs (AOC) are listed asfollows.D8 = 5ΕΟΥDefenderChallengerMV ($)АОC (S)MV (S)АОС ($)110001000300025003000200015003600010003000480005006000(a) Find the economic life (minimum EUAC) of the challenger.(b) Find the most economical period to keep the defender before replacing by the challenger.

There are some basic factors that are required to calculate the replacement period and economic life…

For a replacement analysis, the cost of a challenger is S(10,000 + D8 × 100) and the current market value of the defender is $(2,000 + D8 × 50). Given that the MARR is 10% per year. The market values (MV) and the annual operating and maintenance costs (AOC) are listed as follows. D8 = 5 EOY Defender Challenger MV (S) АОС (S) MV ($) АОС ($) 1 1000 1000 3000 2 500 3000 2000 1500 3 6000 1000 3000 4 8000 500 6000 (a) Find the economic life (minimum EUAC) of the challenger. (b) Find the most economical period to keep the defender before replacing by the challenger.

For a replacement analysis, the cost of a challenger is S(10,000 + D8 × 100) and the current market value of the defender is $(2,000 + D8 × 50). Given that the MARR is 10% per year. The market values (MV) and the annual operating and maintenance costs (AOC) are listed as follows. D8 = 5 EOY Defender Challenger MV (S) АОС (S) MV ($) АОС ($) 1 1000 1000 3000 2 500 3000 2000 1500 3 6000 1000 3000 4 8000 500 6000 (a) Find the economic life (minimum EUAC) of the challenger. (b) Find the most economical period to keep the defender before replacing by the challenger.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 35P

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