(8 Marks) An asset has an initial cost of $130,000 and an estimated salvage value of $35,000 after its 7'- }rear service life. Estimated 0&M costs are $45,000 in year one, increasing by $5,000 per year thereafter. The asset is expected to generate an annual benet of $90,000. Is this a desirable investment if the MARK is 25%