(Solved): Nuclear safety devices installed several years ago have been depreciated from a first cost of $200 ...

Nuclear safety devices installed several years ago have been depreciated from a first cost of $$\$200,000$$ to zero using the Modified Accelerated Cost Recovery System (MACRS). The devices can be sold on the used equipment market for an estimated $$\$15,000$$, or they can be retained in service for 5 more years with a $$\$9000$$ upgrade now and an operating expenses $$(\mathrm{OE})$$ of $$\$6000$$ per year. The upgrade investment will be depreciated over 3 years with no salvage value. The challenger is a replacement with newer technology at a first cost of $$\$40,000,n=5$$ years, and $$S=0$$. The new units will have operating expenses of $$\$7000$$ per year. Ise a 5-year study period, an effective tax rate of $$39\%$$, an after-tax minimum acceptable rate of return (MARR) of $$10\%$$ per year, and an ssumption of classical straight line depreciation (no half-year convention) to perform an after-tax AW-based replacement study. he annual worth of the defender is determined to be $$\$$$ he annual worth of the challenger is determined to be $$\$$$