3. A CNC milling machine was purchased three years ago for $290,000 has a market value...

3. A CNC milling machine was purchased three years ago for $290,000 has a market value that can be described by the relation $290,000 -30,000k, where k is the number of years from the time of purchase. This type of asset has shown that its annual operating cost is described by the relation $40,000 + 20,000k. The asset’s salvage value was originally estimated to be $20,000 after a nine year predicted life. Determine the current values for P,S, and AOC for a replacement study, assuming it will be kept only one more year, which will be the fourth year of ownership.” Solve without using excel or tables

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Rahul Sunny answered 1 year ago

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