A specialty concrete mixer used in construction was purchased for $350,000 7 yea
ID: 2724770 • Letter: A
Question
A specialty concrete mixer used in construction was purchased for $350,000 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 (cash flow approach) and a MARR of 10% to see if the concrete mixer should be replaced if the old mixer is sold for its market value of $65,000.
Please complete in Excel AND upload to http://tempsend.com/ (Select 1 Week) or any upload site you like. Hightlight answer. I will make sure to give instant postive feedback
Explanation / Answer
I did and upload it on http://tempsend.com with file name solution.xlsx.
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