PLEASE SOLVE A B AND C

Question 1. (24 points) One of the four ovens at a bakery is being considered for replacement. Its market value and maintenance costs are given in the table below for several years. A new oven costs S80,000 and this price includes a complete guarantee of the maintenance costs for the first two years, and it covers a good proportion of the maintenance costs for years 3 and 4. The market value and maintenance costs are also summarized in the table. Old Oven New Oven MV, End of Year, k $80,000 75,000 70,000 66,000 End of Annual MV, End of Year, k Annual Expenses (E) Year, k Expenses (E.) $20,000 17,000 $9,500 9,600 14,000 11,000 7,000 9,700 9,800 1,000 62,000 3,000 Both the old and new ovens have similar productivities and energy costs. a) if the before-tax MARR is 15% per year, for how many years should the new workstation be retained in service if purchased? b) Find the economic life of the old oven. c) When should the oven be replaced