A specialty concrete mixer used in construction was purchased
for $290,000 7 years ago. It is MACRS-GDS 5-year property. Its
annual O&M costs are $80,000. At the end of an 8-year
planning horizon, the mixer will have a salvage value of $6,500. If
the mixer is replaced, a new mixer will require an initial
investment of $375,000, and at the end of the 8-year planning
horizon, the new mixer will have a salvage value of $45,000. Its
annual O&M cost...