(Solution) - Big J Construction Company Inc Big J CC is conducting routine periodic -(2025 Original AI-Free Solution)

Paper Details

Big-J Construction Company, Inc. (Big-J CC) is conducting routine periodic review of existing field equipment. The owner of Big-J CC has asked for a replacement evaluation of a paving machine now in use. A newer, more efficient machine is being considered. The old machine was purchased 3 years ago for $200,000, and yearly operating and maintenance costs are as follows. Big-J CC Uses a MARR of 20%; the current market value of the paver is $120,000.
Estimates of Operating &Maintenance Cost and Market Value for Next 7 Years (old paver)

Data for the new paving machine have been analyzed. Its most economic life at 8 years with a minimum EUAC of $62,000. Make a recommendation to Big - J CC regarding the paving machine in question?