A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual O


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A specialty concrete mixer used in construction was purchased
for $300,000 7 years ago. Its annual O 1 answer below » A specialty concrete mixer used in construction was purchased
for $300,000 7 years ago. Its annual O&M costs are
$105,000. At the end of the 8-year planning horizon, the mixer will
have a salvage value of $5,000. If the mixer is replaced, a new
mixer will require an initial investment of $375,000. At the end of
the 8-year planning horizon, it will have a salvage value of
$45,000. Its annual O&M cost will be only $40,000 due
to newer technology. Analyze this using an EUAC measure
and a MARR of 15% to see if the concrete mixer should be
replaced if the old mixer is sold for its market View complete question » A specialty concrete mixer used in construction was purchased
for $300,000 7 years ago. Its annual O&M costs are
$105,000. At the end of the 8-year planning horizon, the mixer will
have a salvage value of $5,000. If the mixer is replaced, a new
mixer will require an initial investment of $375,000. At the end of
the 8-year planning horizon, it will have a salvage value of
$45,000. Its annual O&M cost will be only $40,000 due
to newer technology. Analyze this using an EUAC measure
and a MARR of 15% to see if the concrete mixer should be
replaced if the old mixer is sold for its market value of
$65,000. Use the opportunity cost approach (outsiderAc€?cs viewpoint
approach) to Show the EUAC values used to make your decision: Existing concrete mixer: $ ______ New concrete mixer: $ _____ View less » Jul 05 2015 12:45 PM

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