New aerospace simulator system

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Reference no: EM13939437

In 2008, Raytheon Incorporation purchased a new Aerospace simulator System for $600,000. The estimated salvage value was $28,000 after 12 years. Currently the expected remaining life is 9 years with an AOC of $32,000 per year and an estimated salvage value of $40,000 and has a 14-year economic service life, a $38,000 salvage value, and an estimated AOC of $50,000 per year. If the MARR for the Incorporation is 10% per year, find the minimum trade-in value necessary now to make replacement economically advantageous.

Reference no: EM13939437

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New aerospace simulator system : In 2008, Raytheon Incorporation purchased a new Aerospace simulator System for $600,000. The estimated salvage value was $28,000 after 12 years. If the MARR for the Incorporation is 10% per year, find the minimum trade-in value necessary now to make ..

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