=+7* (Examination question if combined with Question 8) Reds ple is attempting to decide a replacement cycle

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=+7* (Examination question if combined with Question 8) Reds ple is attempting to decide a replacement cycle for new machinery. This machinery costs £10,000 to purchase.

Operating and maintenance costs for the future years are:

Point in time (yearly intervals)

0 1

2 3

Operating and maintenance costs (E)

0 12,000 13,000 14,000

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