An injection molding system has a first cost of $205000 and an annual operating cost of $77000 in years 1 and 2, increasing by $3500 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 11.00% per year, determine the ESL and the respective AW value of the system.

A machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the purchase, it was expected to be used for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. However, last yeat, it incurred a cost $30000, which is expected to escalate to $32,000 this year and increase by $2000 each year thereafter. The market value is now estimated to be $68000-$8000k, where kis the number of years since the machine was purchased. It is now estimated that the machine will be useful for a maximum of 5.00 more years. A replacement study is to be performed. Determine the values of P, n, AOC for year 5.00 and S of this defender. The value of Pis $ The value of n is 5|years. } The AOC for year 5.00 is i The value of Sis $}