State-of-the-art digital imaging equipment purchased 2 years ago for $50,000 had an expected useful life of 5 years and a $5000 salvage value. After its installation the performance, it was upgraded for $20,000 1 year ago. Increased demand now requires another upgrade for an additional $26,000 so that it can be used for three more years. Its new annual operating cost will be $30,000 with a $13,000 salvage after the 3 years. Alternatively, it can be replaced with new equipment costing $64,000, an estimated AOC of $15,000, and an expected salvage of $24,000 after 3 years. If replaced now, the existing equipment can be traded for only $9,000. Use a MARR of 12% per year. Required:
a. Determine whether the company should retain or replace the de- fender now.
b. Based on the poor experience with the current equipment, assume the person doing this analysis decides the challenger may be kept for only 2 years, not 3, with the same AOC and salvage estimates for the 2 years. What is the decision?

answer; blank(1); /rises; blank(2); //increases;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.