hwang258
hwang258
30.07.2019 • 
Business

New microelectronics testing equipment was purchased 2 years ago by mytesmall industries at a cost of $600,000. at that time, it was expected to be used for 5 years and then traded or sold for its salvage value of $75,000. expanded business in newly developed international markets is forcing the decision to trade now for a new unit at a cost of $800,000. the current equipment could be retained, if necessary, for another 2 years, at which time it would have a $5000 estimated market value. the current unit is appraised at $350,000 on the international market, and if it is used for another 2 years, it will have m& o costs (exclusive of operator costs) of $125,000 per year. determine the values of p, aoc, n, and s for this defender if a replacement analysis were performed today.

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