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A chemical plant is considering the replacement of a piece of equipment in its materials handling system with a new piece. If the company's cost

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A chemical plant is considering the replacement of a piece of equipment in its materials handling system with a new piece. If the company's cost of capital is 10%, should the present asset be kept for one more year or replaced? State your recommendation. TIP calculate the EAC (Equivalent Annual Cost) to compare the options A and B using the basic discounted formulae). The following data are provided

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