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New microelectronics testing equipment was purchased 2 years ago by Mytesmall Industries at a cost of $600,000. At that time, it was expected to be used for 5 years and then traded or sold for its salvage value of $75,000. Expanded business in newly developed international markets is forcing the decision to trade now for a new unit at a cost of $800,000 The current equipment could be retained, if necessary, for have a $5000 another years at which e it would estimated market value. The current unit is appraised at $350,000 on the international market, and if it is used for another 2 years, it will have M&O costs (exclusive of operator costs of $125,000 per year. Determine the values of P, n, S, and AOC for this defender if a replacement analysis were performed today.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92195390

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