Data for a new paving machine

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Reference no: EM131810534

Big-J Construction Company, Inc. (Big-J CC) is conducting a routine periodic review of existing field equipment. They use a MAAR of 20%. This includes a replacement evaluation of a paving machine now in use. The machine was purchased 3 years ago for $200,000, The paver's current market value is $120,000, and yearly operating and maintenance costs are as follows.

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Data for a new paving machine have been analyzed. Its most economic life is at 8 years, with a minimum EUAC of $62,000. When should the existing paving machine be replaced?

Reference no: EM131810534

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