Business, 13.08.2020 03:01, mshurney

An existing robot can be kept if $2,300 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. The following estimates have been developed for both the defender and the challenger. The company's before-tax MARR is 25% per year. Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time. Defender Challenger
Current MV $39,000 Purchase price $50,000
Required upgrade $2,300 Installation cost $5,000
Annual expenses $1,600 Annual expenses $1,000
Remaining useful life 6 years Useful life 10 years
MV at end of useful life -$1,500 MV at end of useful life $7,000
The AW value of the defender is: $.

Answers: 2

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Whenever an existing piece of equipment is considered for replacing by a new piece of equipment, the old piece is referred to as the defender, and the new piece of equipment is referred to as the challenger.

The AW value of the defender is------------$15,729.

a) Data and Calculations:

Defender Challenger

Current MV -------$39,000 Purchase price-------$50,000

Required upgrade----------$2,300 Installation cost------$5,000

Annual expenses-----------$1,600 Annual expenses -------$1,000

Remaining useful life--------6 years Useful life ------10 years

MV at end of useful life------$1,500 MV at end of useful life--$7,000

Investment--------- $39,000 + $2,300 Investment = $50,000 + $5,000

= $41,300 = $55,000

Present Value = ($41,300 + Present Value = ($55,000 +

$\$1,600 \times 2.951$ ) = $46,021.60 $\$1,000 \times3.571$ ) = $58,571

$46,022 + $393 $(\$1,500 \times .262)$ $58,571 - $749 ( $\$7,000 \times .107$ )

Equivalent Annual Cost Equivalent Annual Cost

= $\frac{\$46,415}{ 2.951}$ = $\frac{\$57,822}{3.571}$

= $15,729 = $16,192

The overall expenses of owning, operating, and maintaining the robots for 6 - 10 years, correspondingly, are the Equivalent Annual Costs (or Average Weighted Value).

The old robot will incur an additional cost of $1,500 to retire it, but the new robot will have a salvage value of $7,000. After discounting to the current value, these are included in the comparable yearly expenses.

To know more about the calculations of the AM value of defender, refer to the link below:

link

answered: symonya

The AW value of the defender is: $15,729.

Explanation:

a) Data and Calculations:

Defender Challenger

Current MV $39,000 Purchase price $50,000

Required upgrade $2,300 Installation cost $5,000

Annual expenses $1,600 Annual expenses $1,000

Remaining useful life 6 years Useful life 10 years

MV at end of useful life -$1,500 MV at end of useful life $7,000

Investment = $39,000 + $2,300 Investment = $50,000 + $5,000

= $41,300 = $55,000

Present Value = ($41,300 + Present Value = ($55,000 +

$1,600 x 2.951) = $46,021.60 $1,000 x 3.571) = $58,571

$46,022 + $393 ($1,500 x .262) $58,571 - $749 ($7,000 x .107)

Equivalent Annual Cost Equivalent Annual Cost

= $46,415/ 2.951 = $57,822/3.571

= $15,729 = $16,192

The robots' Equivalent Annual Costs (or Average Weighted Value) are the total costs of owning, operating, and maintaining the robots for 6 years and 10 years respectively. For the old robot, additional cost of $1,500 will be incurred to retire the asset, while the new robot will have a salvage value of $7,000. These are factored into the equivalent annual costs, after discounting them to their present values.

answered: Guest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

answered: Guest

answer/// real gdp decreases to y3 and the price level falls to p3;

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An existing robot can be kept if $2,300 is spent now to upgrade it for future service requirements....