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Find the optimum replacement interval AND the minimum EUAC for each of the scenarios below. Please...

Find the optimum replacement interval AND the minimum EUAC for each of the scenarios below.

Please show cash flow diagram and do not use excel functions.

$225,000 is invested in equipment having a salvage value that decreases by 25% per year. O&M costs equal $45,000 the first year and increase by $15,000 per year. Consider a MARR of 15%.

n

EUAC

1

2

3

4

5

6

7

8

9

10

Based on the results obtained, what can you conclude concerning the effect of MARR on the optimum replacement interval?

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Expert Solution

jeff jeffy answered 2 years ago
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