Determine whether the company should upgrade or replace

Reference no: EM13288490

BioHealth, a biodevice systems leasing company, is considering a new equipment purchase to replace a currently owned asset that was purchased 2 years ago for $250,000. It is appraised at a current market value of only $50,000. An upgrade is possible for $200,000 now that would be adequate for another 3 years of lease rights, after which the entire system could be sold on the international circuit for an estimated $40,000. The challenger can be purchased at a cost of $300,000, has an expected life of 10 years, and has a $50,000 salvage value. Determine whether the company should upgrade or replace at a MARR of 12% per year. Assume the AOC estimates are the same for both alternatives.

Reference no: EM13288490

Questions Cloud

What weight should be assigned to the preferred stock : Garfield and Moore has 130,000 shares of common stock outstanding at a price per share of $41.20. There are 12,000 shares of preferred stock outstanding at a price of $58 a share.

Explain and identify whether k gets smaller or bigger : ldentify whether or not the reaction would favor the reactants or produ€ts under the specified conditions, and identify whether K gets smaller or bigger

Find the current does the waffle iron carry : Suppose your waffle iron is rated at 1.20 kW when connected to a 3.00 102 V source. What current does the waffle iron carry

Design a hardware implementation of a binary tree : Design a hardware implementation of a binary tree which functions as follows Each node of the binary tree has a unique address ( as discussed inclass). Given the address (A) of a node, and a datum (I), the machine willwrite I in node A.

Determine whether the company should upgrade or replace : Determine whether the company should upgrade or replace at a MARR of 12% per year. Assume the AOC estimates are the same for both alternatives.

What is the skier''s average acceleration down the hill : A snow skier, starting from rest, goes downhill for 5.00s and reaches a level spot of smooth snow. What is the skier's average acceleration down the hill

Explain what are the molarities of hcl and hbr : The volume of the base required to neutralize the acid was 47.14 mL. Aqueous silver nitrate was then added to precipitate the Cl- and Br- ions as AgCl and AgBr. The mass of silver halides obtained was 0.9974 g. What are the molarities of HCl and H..

Determine what is the cross sectional area of the solenoid : A solenoid consists of 400 turns per meter and carries a currentof .45 Amperes. A 20 turn coil is wrapped tightly around thecircumference of the solenoid. The ends of the solenoid areconnected to a 2 Ohm resistor.

What would be the beat frequency : A sound wave is traveling in seawater, where the adiabatic bulk modulus and density are 2.3 109 Pa and 1025 kg/m3, respectively. What would be the beat frequency heard by an underwater swimmer

User Account

All Pages