What is the dissimilarity in equivalent uniform annual cost

Reference no: EM13684276

Machine A was purchased three years ago for $10,000 and had an estimated market value of $1,400 at the end of its ten-year life. Annual operating costs are $1,200. The machine will perform satisfactorily for the next seven years. A salesman for another company is offering Machine B for $54,000 with a market value of $5,400 after 10 years. Annual operating costs will be $800. Machine A could be sold now for $11,000, and MARR is 23 percent per year. Using the outsider viewpoint, what is the dissimilarity in the equivalent uniform annual cost (EUAC) of buying Machine B compared to continuing to utilize Machine A; i.e., EUAC(Machine B) – EUAC(Machine A). (Do not enter the dollar sign $ with your answer.)

Reference no: EM13684276

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