A school bus manufacturing company is considering the purchase of a new robotic assembly machine to replace an existing assembly operation. The firm plans to sell bonds to raise the money for the new robotic machine. The company plans to repay the bondholders $95,000 each year for 5 years and then redeem the bonds in year 5 for $1.5 million. The robotic machine is expected to last 10 years and have a salvage value of $150,000. It is projected to have a first year annual operating cost of $130,000 with a steady increase in cost each year of $40,000. The company's MARR is 15% per year. The company's current assembly operation has a life expectancy of 3 more years with the following cost projections: Using Replacement Analysis, decide when the company should replace the old assembly operation. (One Tear at a Time Replacement Analysis)