Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on manufactured carpet squares for home and commercial use. It is purchased for \($400,000.\) Its market value will be \($310,000\) at the end of the first year and drop by \($40,000\) per year thereafter to a minimum of \($30,000.\) Operating costs are \($20,000\) the first year, increasing by 8 percent per year. Maintenance costs are only \($8,000\) the first year but will increase by 35 percent each year thereafter. Milliken’s MARR is 20 percent. Determine the optimum replacement interval for the dyer.