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Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost $98,000. It has a market value that can be described by the relation $98,000 - $7,200k, where k is the years from time of purchase. The operating cost for the first 5 years is $52,000 per year, after which it increases by $6,600 per year. The asset's salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of one more year, and (b) a replacement study is done 5 years from now and it is assumed that the equipment will be kept a maximum of only one more year after that. a) The value of Pis $ The value of S is $ The value of AOC is $ b) The value of P is $ The value of S is $ The value of AOC is $

Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost $98,000. It has a market value that can be described by the relation $98,000 - $7,200k, where k is the years from time of purchase. The operating cost for the first 5 years is $52,000 per year, after which it increases by $6,600 per year. The asset's salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of one more year, and (b) a replacement study is done 5 years from now and it is assumed that the equipment will be kept a maximum of only one more year after that. a) The value of Pis $ The value of S is $ The value of AOC is $ b) The value of P is $ The value of S is $ The value of AOC is $

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
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Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost $98,000. It has a market value that can be described by the relation $98,000 - $7,200k, where k is the years from time of purchase. The operating cost for the first 5 years is $52,000 per year, after which it increases by $6,600 per year. The asset's salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of one more year, and (b) a replacement study is done 5 years from now and it is assumed that the equipment will be kept a maximum of only one more year after that. a) The value of P is $ The value of S is $ The value of AOC is b) The value of Pis $ The value of S is $ The value of AOC is $
Transcribed Image Text:Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost $98,000. It has a market value that can be described by the relation $98,000 - $7,200k, where k is the years from time of purchase. The operating cost for the first 5 years is $52,000 per year, after which it increases by $6,600 per year. The asset's salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of one more year, and (b) a replacement study is done 5 years from now and it is assumed that the equipment will be kept a maximum of only one more year after that. a) The value of P is $ The value of S is $ The value of AOC is b) The value of Pis $ The value of S is $ The value of AOC is $
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