1. A water pump to be used by a city's maintenance department costs $10,000 new. A running-in period, costing $1,000 immediately, is required for a new pump. Operating and maintenance costs average $600 at the end of the first year, increasing by $300 per year thereafter. The salvage value of the pump at any time can be estimated by a declining-balance rate of 20%. Assume a MARR of 10%. Using a spreadsheet, calculate the EAC for replacing the pump after one year, two years, etc. Plot the EAC's of capital costs, maintenance costs and total costs over 12 years. What is the minimum (total) EAC over the 12 years? How often should the pump replaced? be 1. A water pump to be used by a city's maintenance department costs $10,000 new. A running-in period, costing $1,000 immediately, is required for a new pump. Operating and maintenance costs average $600 at the end of the first year, increasing by $300 per year thereafter. The salvage value of the pump at any time can be estimated by a declining-balance rate of 20%. Assume a MARR of 10%. Using a spreadsheet, calculate the EAC for replacing the pump after one year, two years, etc. Plot the EAC's of capital costs, maintenance costs and total costs over 12 years. What is the minimum (total) EAC over the 12 years? How often should the pump replaced? be