An old compressor is estimated to cost the following: Year 0 MV=$ 20,000 O&M cost= 0 MV=$ 17,000 O&M cost= $9500 Year 1 MV=$ 14,000 Year 2 O&M cost= 9600 MV=$ 11,000 Year 3 O&M cost= 9700 MV=$ 7,000 Year 3 O&M cost= 9800 MARR=10%, New compressor is estimated to cost the following: MV=$ 80,000 O&M cost= 0 Year 0 Year 1 MV=$ 75,000 O&M cost= $9500 MV=$ 70,000 O&M cost= 0 Year 2 MV=$ 66,000 Year 3 O&M cost= 1000 MV=$ 62,000 Year 3 O&M cost= 3000 MARR=10%, When to replace. None is correct New asset EUAC=12,531 which is less than old 2 asst EUAC, replace immediately Extend life of two years of old asset then replace 3 Extend life of one year of old asset then replace 4 An old compressor is estimated to cost the following: Year 0 MV=$ 20,000 O&M cost= 0 MV=$ 17,000 O&M cost= $9500 Year 1 MV=$ 14,000 Year 2 O&M cost= 9600 MV=$ 11,000 Year 3 O&M cost= 9700 MV=$ 7,000 Year 3 O&M cost= 9800 MARR=10%, New compressor is estimated to cost the following: MV=$ 80,000 O&M cost= 0 Year 0 Year 1 MV=$ 75,000 O&M cost= $9500 MV=$ 70,000 O&M cost= 0 Year 2 MV=$ 66,000 Year 3 O&M cost= 1000 MV=$ 62,000 Year 3 O&M cost= 3000 MARR=10%, When to replace. None is correct New asset EUAC=12,531 which is less than old 2 asst EUAC, replace immediately Extend life of two years of old asset then replace 3 Extend life of one year of old asset then replace 4