Business
Business, 23.10.2021 22:30, rosie20052019

A facility is evaluating replacement of some of the components. Components that need to be replaced have a cost of $175,000. Annual maintenance on the components is $15,000 and increases $1,800 per year. In addition to the annual maintenance, at 7 years after the components are installed, there is a maintenance cost of $45,000. The components have a life span of 12 years and a salvage value of $58,000. Assume an interest rate of 9%. Determine the net present worth of the components.

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A facility is evaluating replacement of some of the components. Components that need to be replaced...

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