A lumber company that cuts fine woods for cabinetry is evaluating if it should retain the current bleaching system or replace it with the new one . The relevant costs of each system are known or estimated . Current System New System First Cost seven years ago , S 450.000 First Cost . S 700.000 Remaining Life , years 10 Current market value . S 50.000 Annual Operating Costs , S/year 160 000 50 000 Future Salvage . 8 50.000 Use an interest rate of 10 % per year to a ) Perform the replacement analysis and 6 ) Determine the minimum resale price needed to make the challenger replacement choice now