Question

One alternative is to replace 18. Typically, there are two alternatives in a replacement analysis. the defrender now. The other alternative is which of the following? A. Keep the defender for its remaining useful life. B. Keep the defender for another year and then reexamine the situation. Censthe defender until an improved chalenger better than the current challenger comes to market D. Keep the defender as long as it's operational 19. A hospital in The Upper Cumberland area bought a diagnostic machine at a cost of $40,000 Maintenance cost is expected to remain constant throughout the life of this machine at $2,000 per year. The salvage value is estimated to be"" at the end of the useful life of 10 yeans Determine the economic life of this machine. MARR-10% A.5 years B. I year C. 10 years D. 7 years 20. Kal Tech Engineering bought a metrology equipment at a cost $$,000. The maintenance schedule for the next 8 years is shown in table below. Determine the value of EUAC of the maintenance costs in year 6. MARR-12%. Year Maintenance Cost, I 0-200T200 2001300-14001 500 1 2 3 4 5 6 A. $188.45 B. $149.87 C. $130.12 D. $168.52 21. The economic life of a depreciable asset may be explained as A. the year at which the equivalent uniform annual cost (EUAC) is the least B. the ADR (asset depreciation range) life C. the end of the useful life D. the year in which the maintenance cost is the smallest 22. If the market interest rate is less than the real interest rate, then it may be inferred that A. the inflation rate is the difference between the two rates. B. a deflationary condition exits C. the real interest rate is zero. D. the inflation rate is zero

Answer 1

As per HOMEWORKLIB RULES first question is answered

Kindly ask rest of the questions in a separate post

18.

Correct option: (C)

Reason: The alternatives in replacement analysis is to either replace the defender (if it is not giving profit) or keep it till the challenger improvises and gives more profits.