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

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Finance

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 $30,000 per year. Consider a MARR of 10%.

n

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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