FE PROBLEM 7.1
$60,000 IS A SUNK COST
$80,000 IS THE DEFENDER’S “SALVAGE VALUE”
$450,000 IS THE INVESTMENT COST FOR THE CHALLENGER
WITH THE INSIDER’S OR CASH FLOW APPROACH, THE NET FIRST COST
REQUIRED TO REPLACE THE DEFENDER IS $450,000 – $80,000 = $370,000
ANSWER: b
FE PROBLEM 7.2
$60,000 IS A SUNK COST
$80,000 IS THE DEFENDER’S “SALVAGE VALUE”
$450,000 IS THE INVESTMENT COST FOR THE CHALLENGER
WITH THE OUTSIDER’S OR OPPORTUNITY COST APPROACH, THE NET FIRST COST
REQUIRED TO REPLACE THE DEFENDER IS $450,000
ANSWER: d
FE PROBLEM 7.3
THE MINIMUM EUAC OCCURS WHEN n = 2
THEREFORE, ORI = 2 YEARS
ANSWER: b
FE PROBLEM 7.4
IF OPERATING AND MAINTENANCE COSTS DO NOT INCREASE OVER TIME AND SALVAGE VALUE
IS NEGLIGIBLE REGARDLESS OF HOW LONG THE EQUIPMENT IS USED. THEN EUAC IS
MINIMIZED BY USING THE EQUIPMENT AS LONG AS POSSIBLE. SINCE THE EQUIPMENT CANNOT
BE USED FOR MORE THAN 10 YEARS, ORI = 10 YEARS.
ANSWER: c
FE PROBLEM 7.5
ALTHOUGH REPLACEMENT PROBLEMS CAN ARISE IN SUPPLY CHAINS, THE SUPPLY CHAIN APPROACH
IS NOT ONE OF THE APPROACHES USED TO PERFORM A REPLACEMENT ANALYSIS.
ANSWER: d
FE PROBLEM 7.6
ALTHOUGH IT IS DIFFICULT TO GENERALIZE, BECAUSE EXPLICIT CONSIDERATION
OF REPLACEMENT COSTS IS REQUIRED FOR EQUIPMENT HAVING A LIFE LESS
THAN THE PLANNING HORIZON, THE SHORTEST LIFE IS COMMONLY USED IN
REPLACEMENT ANALYSES.
ANSWER: a
FE PROBLEM 7.7
THE OUTSIDER’S OR OPPORTUNITY COST APPROACH REQUIRES THAT THE “SALVAGE VALUE” OR
“MARKET VALUE” OF THE DEFENDER BE USED AS ITS INVESTMENT COST FOR THE ALTERNATIVE
OF KEEP OR RETAIN THE DEFENDER.
$20,000 IS THE BOOK VALUE AND PLAYS NO ROLE IN BEFORE-TAX REPLACEMENT ANALYSES
$16,000 IS THE MARKET VALUE OF THE DEFENDER
$45,000 IS THE PURCHASE PRICE FOR THE CHALLENGER
THE FIRST COST OF KEEPING THE OLD LATHE IS $16,000, SINCE THE OPPORTUNITY TO RECEIVE
THAT AMOUNT IS FOREGONE BY KEEPING THE OLD LATHE.
ANSWER: d
FE PROBLEM 7.8
THE INSIDER’S OR CASH FLOW APPROACH CONSIDERS THE ACTUAL AMOUNT OF MONEY SPENT
BY KEEPING OR RETAINING THE DEFENDER TO BE ITS INVESTMENT COST. LIKEWISE, THE NET
CASH FLOW TO PURCHASE THE CHALLENGER IS ITS INVESTMENT COST.
$20,000 IS THE BOOK VALUE AND PLAYS NO ROLE IN BEFORE-TAX REPLACEMENT ANALYSES
$16,000 IS THE MARKET VALUE OF THE DEFENDER
$45,000 IS THE PURCHASE PRICE FOR THE CHALLENGER
THE FIRST COST OF REPLACING THE OLD LATHE IS THE NET CASH FLOW RESULTING FROM
PURCHASING THE CHALLENGER AND SELLING OR TRADING IN THE DEFENDER. HENCE, THE
NET FIRST COST IS $45,000 – $16,000 = $29,000
ANSWER: a
FE PROBLEM 7.9
DETERMINING THE OPTIMUM REPLACEMENT INTERVAL IS DEFINED TO BE THE LENGTH OF TIME
REQUIRED TO MINIMIZE THE EQUIVALENT UNIFORM ANNUAL COST OF OWNING AN OPERATING
THE EQUIPMENT. THE EUAC IS THE SUM OF THE EQUIVALENT UNIFORM ANNUAL COST OF
OPERATING AND MAINTAINING THE EQUIPMENT AND THE CAPITAL RECOVERY COST. THE LATTER
IS DEFINED TO BE THE EQUIVALENT UNIFORM ANNUAL INVESTMENT COST MINUS THE
EQUIVALENT UNIFORM ANNUAL SALVAGE VALUE.
ANSWER: c
FE PROBLEM 7.10
THE MORE YOU SPEND THE LONGER IT TAKES FOR THE CAPITAL RECOVERY COST TO BE REDUCED TO
A VALUE THAT IS EQUAL TO OR LESS THAN THE EQUIVALENT UNIFORM ANNUAL COST OF OPERATING
AND MAINTAINING THE EQUIPMENT. HENCE, BY INCREASING THE MAGNITUDE OF THE INITIAL INVESTMENT,
THE ORI WILL TEND TO INCREASE.
ANSWER: b
PROBLEM 7.1
CONSIDER A 4 YEAR OLD NOTEBOOK COMPUTER WITH A PENTIUM 4, 512 MEGS OF RAM, AND A 40 GIG HARD DRIVE
a REASONS TO CONSIDER REPLACING
1 HARD DRIVE IS OF MARGINAL SIZE FOR TODAY’S FILES
2 MEMORY IS NOT ALWAYS SUFFICIENT
3 DISPLAYS ARE MUCH MORE CLEAR TODAY
4 WI-FI NOT BUILT IN
5 CANNOT BURN DVD
6 HAVING TO MAKE MINOR REPLACEMENTS (BATTERY, CHARGER, ETC.)
b DELL NOTEBOOK COMPUTER ($2090) WITH
160 GIG HARD DRIVE
3 GIG SHARED DUAL CHANNEL MEMORY AT 667 MHZ
HIGH RES SCREEN 1920×1200 GLOSSY
WI-FI BUILT IN
CD/DVD BURNER
DELL NOTEBOOK COMPUTER ($1270) WITH
160 GIG HARD DRIVE
3 GIG SHARED DUAL CHANNEL MEMORY AT 667 MHZ
WUXGA LCD DISPLAY WITH TRUE LIFE
WI-FI BUILT IN
CD/DVD BURNER
THESE ARE PRELIMINARY LOOKS AT FEATURES. LARGE PRICE DIFFERENCE!
PROBLEM 7.2
1FUNCTIONAL OBSOLESCENCE
A. A DISHWASHER THAT LASTED 22 YEARS, WEARING OUT SOME PARTS THAT WERE NO LONGER AVAILABLE FOR REPAIR
B. A 1992 SATURN AUTOMOBILE WITH OVER 220,000 MILES (CHANGING OIL EVERY 3000 MILES IS THE KEY) THAT IS STARTING
TO WEAR IN MANY PLACES AND CANNOT MEET ALL OF THE NEW ENVIRONMENTAL REQUIREMENTS
C. COAXIAL CABLE USED TO WIRE A HOUSE FROM A CENTRAL HUB – COAX DEGRADES AND DEVELOPS LOSSES OVER TIME
2TECHNOLOGICAL OBSOLESCENCE
A. A COUPLE OF PERSONAL COMPUTERS THAT STILL WORK WELL, BUT LACK IN SPEED, MEMORY, HARD DRIVE CAPACITY,
AS WELL AS USB, FIREWIRE, AND CARD READER PORTS
B. A TELEVISION THAT LACKS THE HIGH DEFINITION CAPABILITY
C. COAXIAL CABLE USED TO WIRE A HOUSE FROM A CENTRAL HUB – NEWER CABLE HAS FAR LESS LOSS THAN OLD CABLE,
EVEN WHEN THE OLD CABLE WAS NEW
3ECONOMIC OBSOLESCENCE
A. AN AIR CONDITIONER THAT STILL WORKS WELL, AND YET IS LESS THAN HALF AS EFFICIENT AS NEW AIR CONDITIONERS
B. INCANDESCENT LIGHTING THAT IS OFTEN MORE COSTLY AND RELATIVELY DARK COMPARED TO NEW AND ECONOMICALLY
EFFICIENT VARIETIES OF BULBS
PROBLEM 7.3
REASONS WHY FAMILIES USE EQUIPMENT LONG AFTER IT WOULD BE ECONOMICALLY JUSTIFIED TO REPLACE IT
1 REPLACING A COMPUTER IS SOMETIMES PUT OFF DUE TO THE HASSLE OF LEARNING A NEW OPERATING SYSTEM,
WANTING TO LET THE NEW OPERATING SYSTEM INCLUDE THE NUMEROUS FIXES NEEDED, TRANSFER OF DATA,
RELOADING OF APPLICATIONS. (REASONS 2, 3, AND 9)
2 REPLACING A VERY INEFFICIENT HOME HEATER DUE TO THE NEED FOR A SUBSTANTIAL OUTLAY OF MONEY ALL AT
ONE TIME, ESPECIALLY IF MOVING TO A NEW HOME WITHIN A FEW YEARS IS ANTICIPATED. (REASONS 2 AND 5)
3 REPLACING A TELEVISION AT A TIME WHEN THE HD PROTOCOL IS IN MANY FORMS, WITH NO ABSOLUTE COMMON
STANDARD. THIS IS A CASE OF “WAIT UNTIL NEXT YEAR AND THE TECHNOLOGY WILL BE EVEN MORE PROVEN AND
COSTS WILL BE LOWER.” (REASONS 4 AND 8)
PROBLEM 7.4
a INSIDER’S VIEWPOINT APPROACH
KEEP EXISTING PAINTING MACHINE REPLACE WITH NEW PAINTING MACHINE
MARKET VALUE = $40,000.00 FIRST COST = $800,000.00
ANNUAL O&M COST = $350,000.00 ANNUAL O&M COST = $120,000.00
SALVAGE VALUE IN 10 YEARS = $0.00 SALVAGE VAL IN 10 YEARS = $100,000.00
REMAINING LIFE = 10 REMAINING LIFE = 10
MARR = 20.00% MARR = 20.00%
EUAC=(800000-40000)(A|P 20%,10)+120000-100000(A|F 20%,10)=
EUAC=350000= $350,000.00 EUAC=(800000-40000)(0.23852)+120000-100000(0.03852)= $297,423.20
RECOMMENDATION: REPLACE WITH NEW PAINTING MACHINE
EOY CF EXISTING EOY CF NEW
0 $0.00 0 -$760,000.00
1 -$350,000.00 1 -$120,000.00
2 -$350,000.00 2 -$120,000.00
3 -$350,000.00 3 -$120,000.00
4 -$350,000.00 4 -$120,000.00
5 -$350,000.00 5 -$120,000.00
6 -$350,000.00 6 -$120,000.00
7 -$350,000.00 7 -$120,000.00
8 -$350,000.00 8 -$120,000.00
9 -$350,000.00 9 -$120,000.00
10 -$350,000.00 10 -$20,000.00
PW= -$1,467,365.23 PW= -$1,246,946.09
EUAC= $350,000.00 EUAC= $297,425.02
RECOMMENDATION: REPLACE WITH NEW PAINTING MACHINE
EUAC DIFFERENCE = $52,574.98
b OUTSIDER’S VIEWPOINT APPROACH
KEEP EXISTING PAINTING MACHINE REPLACE WITH NEW PAINTING MACHINE
MARKET VALUE = $40,000.00 FIRST COST = $800,000.00
ANNUAL O&M COST = $350,000.00 ANNUAL O&M COST = $120,000.00
SALVAGE VALUE IN 10 YEARS = $0.00 SALVAGE VAL IN 10 YEARS = $100,000.00
REMAINING LIFE = 10 REMAINING LIFE = 10
MARR = 20.00% MARR = 20.00%
EUAC=40000(A|P 20%,10)+350000= EUAC=800000(A|P 20%,10)+120000-100000(A|F 20%,10)=
EUAC=40000(0.23852)+350000= $359,540.80 EUAC=800000(0.23852)+120000-100000(0.03852)= $306,964.00
RECOMMENDATION: REPLACE WITH NEW PAINTING MACHINE
EOY CF EXISTING EOY CF NEW
0 -$40,000.00 0 -$800,000.00
1 -$350,000.00 1 -$120,000.00
2 -$350,000.00 2 -$120,000.00
3 -$350,000.00 3 -$120,000.00
4 -$350,000.00 4 -$120,000.00
5 -$350,000.00 5 -$120,000.00
6 -$350,000.00 6 -$120,000.00
7 -$350,000.00 7 -$120,000.00
8 -$350,000.00 8 -$120,000.00
9 -$350,000.00 9 -$120,000.00
10 -$350,000.00 10 -$20,000.00
PW= -$1,507,365.23 PW= -$1,286,946.09
EUAC= $359,540.91 EUAC= $306,965.93
RECOMMENDATION: REPLACE WITH NEW PAINTING MACHINE
EUAC DIFFERENCE = $52,574.98
PROBLEM 7.6
INSIDER’S VIEWPOINT APPROACH
a MARKET VALUE = CASH COST ($108,000) MINUS COST W ITH TRADE-IN ($91,000) = $17,000
MARKET VALUE = $17,000.00
b KEEP EXISTING EQUIPMENT, PLUS SUPPLEMENT IN YEARS 3, 4, 5 NEW TECHNOLOGY FOR DL
SALVAGE VALUE = $0.00 FIRST COST = $108,000.00
O&M OF EXISTING EQPT YEARS 1-5 = $9,000.00 SALVAGE VALUE = $20,000.00
LEASED SUPP HI-DEF EQPT ($ BEGINNING OF YRS 3, 4, 5) = $30,000.00 O&M OF NEW TECHNOLOGY YEARS 1-5 = $8,000.00
LEASED SUPP HI-DEF EQPT O&M ($ END OF YEARS 3, 4, AND 5) = $7,000.00
PLANNING HORIZON = 5 PLANNING HORIZON = 5
MARR = 10.00% MARR = 10.00%
EUAC=9000+30000(P|A 10%,3)(P|F 10%,1)(A|P 10%,5)+7000(P|A 10%,3)(P|F 10%,2)(A|P 10%,5)= EUAC=(108000-17000)(A|P 10%,5)+8000-20000(A|F 10%,5)=
EUAC=9000+30000(2.48685)(0.90909)(0.26380)+7000(2.48685)(0.82645)(0.26380)= $30,686.98 EUAC=(108000-17000)(0.26380)+8000-20000(0.16380)= $28,729.80
RECOMMENDATION: INVEST IN NEW DL TECHNOLOGY
EOY CF EXISTING EOY CF NEW
0 $0.00 0 -$91,000.00
1 -$9,000.00 1 -$8,000.00
2 -$39,000.00 2 -$8,000.00
3 -$46,000.00 3 -$8,000.00
4 -$46,000.00 4 -$8,000.00
5 -$16,000.00 5 $12,000.00
PW= -$116,327.06 PW = ##########
EUAC= $30,686.79 EUAC= $28,729.62
RECOMMENDATION: INVEST IN NEW DL TECHNOLOGY
EUAC DIFFERENCE = $1,957.17
OUTSIDER’S VIEWPOINT APPROACH
c MARKET VALUE = CASH COST ($108,000) MINUS COST WITH TRADE-IN ($91,000) = $17,000
MARKET VALUE = $17,000.00
d KEEP EXISTING EQUIPMENT, PLUS SUPPLEMENT IN YEARS 3, 4, 5 NEW TECHNOLOGY FOR DL
SALVAGE VALUE = $0.00 FIRST COST = $108,000.00
O&M OF EXISTING EQPT YEARS 1-5 = $9,000.00 SALVAGE VALUE = $20,000.00
LEASED SUPP HI-DEF EQPT ($ BEGINNING OF YRS 3, 4, 5) = $30,000.00 O&M OF NEW TECHNOLOGY YEARS 1-5 = $8,000.00
LEASED SUPP HI-DEF EQPT O&M ($ END OF YEARS 3, 4, AND 5) = $7,000.00
PLANNING HORIZON = 5 PLANNING HORIZON = 5
MARR = 10.00% MARR = 10.00%
EUAC=17000(A|P 10%,5)+9000+30000(P|A 10%,3)(P|F 10%,1)(A|P 10%,5)+7000(P|A 10%,3)(P|F 10%,2)(A|P 10%,5)= EUAC=108000(A|P 10%,5)+8000-20000(A|F 10%,5)=
EUAC=17000(0.26380)+9000+30000(2.48685)(0.90909)(0.26380)+7000(2.48685)(0.82645)(0.26380)= $35,171.58 EUAC=108000(0.26380)+8000-20000(0.16380)= $33,214.40
RECOMMENDATION: INVEST IN NEW DL TECHNOLOGY
EOY CF EXISTING EOY CF NEW
0 -$17,000.00 0 ##########
1 -$9,000.00 1 -$8,000.00
2 -$39,000.00 2 -$8,000.00
3 -$46,000.00 3 -$8,000.00
4 -$46,000.00 4 -$8,000.00
5 -$16,000.00 5 $12,000.00
PW= -$133,327.06 PW = ##########
EUAC= $35,171.34 EUAC= $33,214.18
RECOMMENDATION: INVEST IN NEW DL TECHNOLOGY
EUAC DIFFERENCE = $1,957.17
PROBLEM 7.7
INSIDER’S VIEWPOINT APPROACH
a KEEP EXISTING SHREDDER LEASE EQUIVALENT SHREDDER
MARKET VALUE = $200,000.00 COST PER DAY = $200.00
SALVAGE VALUE = $10,000.00 COST PER HOUR OF ACTUAL USE = $80.00
O&M COST PER YEAR = $100,000.00 EXPECTED DAYS PER YEAR = 250
EXPECTED HOURS OF USE PER YEAR = 1500
PLANNING HORIZON = 4 PLANNING HORIZON = 4
MARR = 15.00% MARR = 15.00%
EUAC=100000-10000(A|F 15%,4)= EUAC=-200000(A|P 15%,4)+200*250+80*1500=
EUAC=100000-10000(0.20027)= $97,997.30 EUAC=-200000(0.35027)+200*250+80*1500= $99,946.00
RECOMMENDATION: KEEP THE EXISTING SHREDDER
EUAC= $97,997.35 EUAC= $99,946.93
RECOMMENDATION: KEEP THE EXISTING SHREDDER
EUAC DIFFERENCE = -$1,949.58
OPERATING COST PER YEAR= $190,000.00
PLANNING HORIZON = 4
MARR = 15.00%
EUAC=-200000(A|P 15%,4)+190000=
EOY CF NO SHREDDER
0 $200,000.00
PW= -$342,445.89
EUAC= $119,946.93
RECOMMENDATION: LEASE EQUIVALENT SHREDDER
MARKET VALUE = $200,000.00 COST PER DAY = $200.00
SALVAGE VALUE = $10,000.00 COST PER HOUR OF ACTUAL USE = $80.00
PLANNING HORIZON = 4 PLANNING HORIZON = 4
MARR = 15.00% MARR = 15.00%
EUAC=200000(A|P 15%,4)+100000-10000(A|F 15%,4)= EUAC=200*250+80*1500=
EUAC=200000(0.35027)+100000-10000(0.20027)= $168,051.30 EUAC=200*250+80*1500= $170,000.00
RECOMMENDATION: KEEP EXISTING SHREDDER
4 -$90,000.00 4 -$170,000.00
PW= -$479,780.30 PW= -$485,346.32
EUAC= $168,050.42 EUAC= $170,000.00
RECOMMENDATION: KEEP EXISTING SHREDDER
EUAC DIFFERENCE = -$1,949.58
0 $0.00
1 -$190,000.00
2 -$190,000.00
3 -$190,000.00
4 -$190,000.00
PW= -$542,445.89
EUAC= $190,000.00
RECOMMENDATION: LEASE EQUIVALENT SHREDDER
PROBLEM 7.8
KEEP EXISTING MATERIAL HANDLING SYSTEM TRADE IN EXISTING SYSTEM ON NEW MH SYSTEM SELL EXISTING SYSTEM AND LEASE NEW MH SYSTEM
TRADE-IN VALUE NOW IF NEW SYSTEM PURCHASED = $55,000.00 FIRST COST IF EXISTING UNIT IS TRADED IN = $175,000.00 BEGINNING OF YEAR LEASE COST = $31,000.00
ACTUAL MARKET VALUE NOW = $45,000.00 ADJ BASIS DUE TO INFLATED TRADE-IN = $165,000.00 ANNUAL O&M COST END OF YEAR = $15,000.00
SALVAGE VALUE IN 8 YEARS = $6,000.00 SALVAGE VALUE = $50,000.00
ANNUAL O&M COST OF EXISTING SYSTEM = $48,000.00 O&M OF NEW SYSTEM = $17,000.00
PLANNING HORIZON = 8 PLANNING HORIZON = 8 PLANNING HORIZON = 8
MARR = 15.00% MARR = 15.00% MARR = 15.00%
EUAC=48000-6000(A|F 15%,8)= EUAC=(165000-45000)(A|P 15%,8)+17000-50000(A|F 15%,8)= EUAC=31000(F|P 15%,1)+15000-45000(A|P15%,8)=
EUAC=48000-6000(0.07285)= $47,562.90 EUAC=(165000-45000)(0.22285)+17000-50000(0.07285)= $40,099.50 EUAC=31000(1.15)+15000-45000(0.22285)= $40,621.75
EOY CF EXISTING EOY CF NEW EOY CF LEASE
0 $0.00 0 -$120,000.00 0 $14,000.00
1 -$48,000.00 1 -$17,000.00 1 -$46,000.00
2 -$48,000.00 2 -$17,000.00 2 -$46,000.00
3 -$48,000.00 3 -$17,000.00 3 -$46,000.00
4 -$48,000.00 4 -$17,000.00 4 -$46,000.00
5 -$48,000.00 5 -$17,000.00 5 -$46,000.00
6 -$48,000.00 6 -$17,000.00 6 -$46,000.00
7 -$48,000.00 7 -$17,000.00 7 -$46,000.00
8 -$42,000.00 8 $33,000.00 8 -$15,000.00
PW= -$213,430.02 PW= -$179,939.38 PW= -$182,282.83
EUAC= $47,562.90 EUAC= $40,099.51 EUAC= $40,621.75
RECOMMENDATION: TRADE IN EXISTING SYSTEM ON NEW MH SYSTEM
PROBLEM 7.9
a INSIDER’S VIEWPOINT APPROACH
KEEP EXISTING CRANE REPLACE WITH NEW CRANE
MARKET OR TRADE-IN VALUE = $40,000.00 FIRST COST = $150,000.00
ANNUAL O&M COST = $35,000.00 ANNUAL O&M COST = $8,000.00
SALVAGE VALUE = $0.00 SALVAGE VALUE AFTER 5 YEARS = $55,000.00
PLANNING HORIZON = 5 PLANNING HORIZON = 5
MARR = 20.00% MARR = 20.00%
EUAC=35000= EUAC=(150000-40000)(A|P 20%,5)+8000-55000(A|F 20%,5)=
EUAC=35000= $35,000.00 EUAC=(150000-40000)(0.33438)+8000-55000(0.13438)= $37,390.90
RECOMMENDATION: KEEP EXISTING CRANE
EOY CF EXISTING EOY CF NEW
0 $0.00 0 -$110,000.00
1 -$35,000.00 1 -$8,000.00
2 -$35,000.00 2 -$8,000.00
3 -$35,000.00 3 -$8,000.00
4 -$35,000.00 4 -$8,000.00
5 -$35,000.00 5 $47,000.00
PW= -$104,671.42 PW= -$111,821.63
EUAC= $35,000.00 EUAC= $37,390.88
RECOMMENDATION: KEEP EXISTING CRANE
EUAC DIFFERENCE = $2,390.88
b OUTSIDER’S VIEWPOINT APPROACH
KEEP EXISTING CRANE REPLACE WITH NEW CRANE
MARKET OR TRADE-IN VALUE = $40,000.00 FIRST COST = $150,000.00
ANNUAL O&M COST = $35,000.00 ANNUAL O&M COST = $8,000.00
SALVAGE VALUE = $0.00 SALVAGE VALUE AFTER 5 YEARS = $55,000.00
PLANNING HORIZON = 5 PLANNING HORIZON = 5
MARR = 20.00% MARR = 20.00%
EUAC=40000(A|P 20%,5)+35000= EUAC=150000(A|P 20%,5)+8000-55000(A|F 20%,5)=
EUAC=40000(0.33438) +35000= $48,375.20 EUAC=150000(0.33438)+8000-55000(0.13438)= $50,766.10
RECOMMENDATION: KEEP EXISTING CRANE
EUAC DIFFERENCE= $2,390.88