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Unformatted text preview: 13-1 For the Replacement Analysis Decision Map, the apprOpriate analysis method
is a function of the cash ﬂows and assumptions made regarding the defender
and challenger assets. Thus, the answer would be the last it depends on the data and the assumptions For this problem we have me ‘
_ rgrnal 00st
check to see If that data is strictly irtcreartsrdlffrtga for the defender, so we will 1 3-29
Here we use the Opportunity Cost Approach for finding the first costs. (a) Problem as given
Defender: SL depreciation ($50,000 - $15,000)/10 = $3,500 per year MV today b) Defender Market value = $25,500 Defender. SL Depr = ($50,000 - $15.000)/10 = $3.500 Per Year
MV (today) = $30,000 (c) Defender Market Value = $13,000 Defender: SL Depr: $50, _
MV (today) =$13,oo(() 000 $15v°°0)/10 =$3,500 per year Challenger ...
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This note was uploaded on 04/07/2008 for the course IMSE 530 taught by Professor Chang during the Fall '07 term at Kansas State University.
- Fall '07