A city wants to analyze the scenario of replacing its old mechanical street broom with a brand new one. Here is the information available for your analysis: Current mechanical broom Market value: $ 5,000 Annual depreciation: $ 1,000 / year Still useful life: 5 years Annual running costs of the current mechanical broom Year 1: $ 8,000 Year 2: $ 9,000 Year 3: $ 10,000 Year 4: $ 11,000 Year 5: $ 12,000 Cost of capital: 15% / year Acquisition of a new mechanical broom Purchase cost: $ 40,000 Annual depreciation: $ 5,000 / year Resale value: $ 4,000 Useful life: 6 years Cost of capital: 15% / year Estimated annual operating cost: $ 3,000 / year 1 Project profitability analysis I - GIA 1047 - Final review a) What are the annual costs of ownership and operation per year, for 5 years keeping the current old mechanical broom? (1 point) b) What will be the annual costs of ownership and operation per year, for 6 years by purchasing a new mechanical broom? (1 point) c) What are the CAEs each year for 5 years by keeping the old mechanical broom? (1 point) d) If the City decides to keep the old mechanical broom, for how many years should it do so to minimize the PPA? (1 point) e) What will the CAE be each year for 6 years with the purchase of a new mechanical broom? (1 point) f) If the City decides to buy a new mechanical broom, how many years should it keep it to minimize PPAs? (1 point)