A small high-speed commercial centrifuge has the following net cash flows and abandonment values over its useful life (see Table P9-15, p. 439). The firm€™s MARR is 10% per year. Determine the optimal time for the centrifuge to be abandoned if its current MV is $7,500 and it won€™t be used for more than five years.

Table P9-15:

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End of Year 2 4 Annual revenues less expenses Abandonment value of machine" $2,000 $2,000 $2,000 $2,000 $2,000 $5,200 $2,200 $6,200 $4,000 " Estimated MV.