A 5 year-old tooling kit that was purchased new for $9000 has a current market value of $4000 and expected 0&1\" costs of$3000, increasing by $1200 per year. Future market values are expected to decline by 25% annually (going forward]. The kit can be used for another 3 years at most. The optimal replacement kit costs $8000 and has 0&M costs starting at $2500 per year, increasing by $2000 per year. Salvage value for the new kit at the end of the rst year is $4000 and falls by $1000 per year thereafter [until zero]. The new model kit will be needed indenitely. Assume a unique minimum AECN(15%] for both kits [both the current and replacement kit]. The MARE is 15%. 1] What is the AECC" ? a] Less than 6925.20 b] 692530694530 c] 694-5706965370 d] 696570698570 e] More than 6935.70