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Business, 03.05.2021 17:20 ericsanchez1125

A small company that manufactures vibration isolation platforms is trying to decide whether it should replace the current assembly system (D), which is rather labor intensive, at present or 1 year from now with a system that is more automated (C). Some components of the current system can be sold immediately for $10,500, but they will be worthless hereafter. The operating cost of the existing system is $169,500 per year. System C will cost $335,000 with a $50,000 salvage value after 4 years. Its operating cost will be $71,000 per year. If you are told to do a replacement analysis using an interest rate of 10% per year, which system would you recommend

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