10.32 John must perform a replacement study on pressing equipment in an industrial laundry. The challenging asset has a computed AWc $-42,000 for its anticipated 10-year life. John has completed data collec- tion on the defender with the following projected AOC and trade-in values for the next 5 years, after which the currently owned equipment must be replaced. Additional Years Retained AOC Trade-in Value $28,000 $34,000 30,000 22,000 2 15.000 5,000 30.000 3 30,000 30,000 If the current equipment is used for another 5 years, it will cost a net estimated $2000 to remove it from the plant, Perform one-additional- year replacement analysis at a 16 %-per - year return to determine how many years to keep the pressing unit before replacing it. 10.32 John must perform a replacement study on pressing equipment in an industrial laundry. The challenging asset has a computed AWc $-42,000 for its anticipated 10-year life. John has completed data collec- tion on the defender with the following projected AOC and trade-in values for the next 5 years, after which the currently owned equipment must be replaced. Additional Years Retained AOC Trade-in Value $28,000 $34,000 30,000 22,000 2 15.000 5,000 30.000 3 30,000 30,000 If the current equipment is used for another 5 years, it will cost a net estimated $2000 to remove it from the plant, Perform one-additional- year replacement analysis at a 16 %-per - year return to determine how many years to keep the pressing unit before replacing it