Please use excel and demonstrate the formulae used. A medium-sized industrial grade compressor can be purchased...

Please use excel and demonstrate the formulae used.

The compressor salvage value for a given period t, is calculated based on the following equation: Salvage value (t) = $30,000– $3,000 * t

a) Find the Optimum Replacement Interval for this Equipment

b) Find the Optimum Replacement Interval for this Equipment if the O&M costs is increased to $1,600/yr. What is your conclusion?

c) Find the Optimum Replacement Interval for this Equipment if the initial cost is reduced to $32,000. What is your conclusion?

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jeff jeffy answered 3 months ago

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