A 5 year-old tooling kit that was purchased new for $9000 has a current market value of $4000 and expected 0&M 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 first year is $4000 and falls by $1000 per year thereafter (until zero). The new model kit will be needed indefinitely. Assume a unique minimum AEC(15%) for both kits (both the current and replacement kit]. The MARR is 15%. 1) What is the AECc* ? a) Less than 6925.70 b) 6925.70-6945.70 c) 6945.70-6965.70 d) 6965.70-6985.70 e) More than 6985.70 N= 1 => A = 8K ( 1-15 ) + 2500 - 4k = 2700 3 4 N= 2 . 6151 6 152 ( AIP, 151, 2 ) = ( 6953. 63 3 2505 7 2 31 4370 4503 ASALAS = YK + 4500 1.152 ( 1 :15 5 ) 3 (AIP, 17, 3 ) - 7 242.50