As a cotton farmer, you have owned a cotton stripper for several years. You originally purchased it for $400K five years ago. Your accountant has been using MACRS depreciation and shows its value on his books (BV) at $100K. Breakdowns have occurred rather frequently last harvesting season and you think it might be time to buy a new one. You estimate the current cotton stripper will last another 3 years with a salvage value then of $45K. If you sold it now, you think you would bring in $120K. A comparable new one costs $450K, is expected to last 10 years, and sell for $50K then. The new one is more efficient and more reliable and O&M is estimated a $5K/yr. The O&M for your current cotton stripper is $15K/yr. Should you buy the new cotton stripper this year or wait ? MARR for your farming operation is 8%.