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One of the four ovens at a bakery is being considered for replacement Its salvage value and maintenance costs are given in the table below for several years A new oven costs $80000 this price

One of the four ovens at a bakery is being considered for replacement. Its salvage value and maintenance costs are given in the table below for several years. A new oven costs $80,000, this price includes a complete guarantee of the maintenance costs for the first two years, and it covers a good proportion of the maintenance costs for years 3 and 4. The salvage value and maintenance costs are also summarized in the table  Both the old and the new oven have similar productivity s and energy costs. Should the oven be replaced this year, if the MARR equals10%?

Jun 19 2020 View more View Less

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