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In a replacement analysis problem, the following facts are known: $12,000 Year 1-3 4-5 Initial cost Annual maintenance None $2000 $4500 +$2500/yr 7-10 Salvage value

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In a replacement analysis problem, the following facts are known: $12,000 Year 1-3 4-5 Initial cost Annual maintenance None $2000 $4500 +$2500/yr 7-10 Salvage value in any year is zero. Assume a 10% interest rate and ignore income taxes. Compute the life for this challenger having the lowest EUAC

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