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A machine tool company has a production machine with a trade in value of $10,200. The company will not keep the machine more than 3 more years. The costs associated with the machine are shown in the table below:
Year AOC SV1 $35,000 $8,3002 $37,000 $6,5003 $30,000 $7,200
At the beginning of year 3, the company would be required to spend$5,200for an upgrade in order to keep the machine for year 3. The company can acquire a new machine for$38,000with a7year economic life,$9,100 salvage value after 7 years and an AOC of$20,000with a$2,000per year increasing gradient. The Company's MARR is 12% per year.( note you must use "one year at a time". Solution with. Flow chart). Determine when the company should replace the machine
Package Design Brief: Assume you are the packaging engineer for a large consumer products company. In this company, the Packaging Design Briefs are initiated by the marketing group and forwarded to the Package Engineering group.
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