Write difference in the equivalent uniform annual cost euac

Reference no: EM13388291

Machine A waspurchasedthreeyearsago for $10,000 and had an estimated market valueof $1,200 at the end ofits 10-year life. Annual operating costsare $1,100. The machinewillperformsatisfactorily for the nextsevenyears. A salesman for anothercompany is offeringMachine B for $52,000 with an market valueof $5,200 after 10 years. Annual operating costswill be $700. Machine A could be sold now for $9,000, and MARR is 16% per year. Using the outsider viewpoint, what is the difference in the equivalent uniform annualcost (EUAC) of buying Machine B compared to continuing to use Machine A; i.e., EUAC(Machine B) - EUAC(Machine A). (Do not enter the dollar sign $ withyouranswer.)

Reference no: EM13388291

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