Find the optimum replacement interval AND the minimum EUAC for each of the scenarios below....
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Finance
Find the optimum replacement intervalANDthe 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 $30,000 per year. Consider a MARR of 10%.
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EUAC
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Based on the results obtained, what can you conclude concerning the effect of O&M costs on the optimum replacement interval?
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