Necessary to make buying the challenger advantageous

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Reference no: EM131991483

Two years ago, Jared's Manufacturing Inc. purchased a new GPS tracker system for $%1,500,000. The estimated salvage value was $50,000 after nine years. Currently the expected remaining life is seven years with an AOC of $75,000 per year. They are considering a new tracker that costs $400,000 and has an estimated 12-year life, $35,000 salvage value, and AOC of $50,000. If the MARR is 12% per year find the minimum trade-in value (RV) necessary to make buying the challenger advantageous.

Reference no: EM131991483

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