Hi there! This is the question that i have got, thanks in advance.

Question 1 (1 point) A 5 year-old tooling kit that was purchased new for $50,000 and has a current market (trade-in) value of $8000 and expected 0&M costs of $8600, increasing by 1000 per year. The kit is in need of an immediate overhaul (repair) expected to cost $1000. Future market values are expected to decline by 25% annually (going forward). The kit can be used for another 7 years at most. The optimal replacement kit information is below. The new model kit will be needed indefinitely. Assume a unique minimum AECN(15%) for both kits (both the current and replacement kit). The replacement kit has N*=4 and AEC*C = 14,000 What is AEC*D? O 8) Between 12,578 12,618 O b) Between 12,458 12,498 0 c) Between 12,498 12,538 0 d) Between 12,538 12,578 0 e) None of the answer is correct