Sheet1
| Old Backhoes | New Backhoes | |
| Purchase cost when new | $90,000 | $200,000 |
| Salvage value now | $42,000 | |
| Investment in major overhaul needed in next year | $55,000 | |
| Salvage value in 8 years | $15,000 | $90,000 |
| Remaining life | 8 years | 8 years |
| Net cash flow generated each year | $30,425 | $43,900 |
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