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In evaluating a piece of equipment for its optimum replacement interval, the following table of marginal...

In evaluating a piece of equipment for its optimum replacement interval, the following table of marginal costs were calculated. Year 1 2 3 4 5 MC(year1) $11,755 (year 2)$12,390 (year 3)$12,750 (year 4) $12,955 (YEAR 5)$13,425 The best available technology on the market costs $30,000 with projected revenues of O&M of $10,000 and O&M starting at $2500 and increasing $2000 per year. If corporate MARR is 18%, what is your recommendation? [year]

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jeff jeffy answered 2 years ago
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