Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost $117000. It has a market value that can be described by the relation $117000 $8600k, where k is the years from time of purchase. The operating cost for the first 5 years is $69000 per year, after which it increases by $6100 per year. The assets salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of one more year, and (b) a replacement study is done 5.00 years from now and it is assumed that the equipment will be kept a maximum of only one more year after that.

a)

The value of P is $ .

The value of S is $ .

The value of AOC is $ .

b)

The value of P is $ .

The value of S is $ .

The value of AOC is $