A presently owned machine can last 3 more years if properly maintained at a cost of $14,000 per year. Its AOC is $27,000 per year. After 3 years, it can be sold for an estimated $9,000. A replacement costs $72,000 with a $10,000 salvage value after 3 years and an operating cost of $17,000 per year. Different vendors have offered $10,000 and $14,000, respectively, for the current system as a trade-in for the replacement machine. Required:
At 12% per year interest, perform a replacement study for the two trade-in offers.

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer