ENGR 390 – what first cost should be assigned to the existing system
June 8th, 2024
A material handling system was purchased 3 years ago for $112709.0. Two years ago it required substantial upgrading at a cost of $15071.0. It once again is requiring an upgrading cost of $22600.0. Alternately, a new system can be purchased today at a cost of $188948.0, with a salvage value of $18545.0. The existing machine could be sold today for $50081.0. In an economic replacement analysis, what first cost should be assigned to the existing system?