Problem (5): A Steel manufacturing company purchased three years ago a lifting machine to move steel parts for $45,000. The current value of this machine is $20,000 and will decline by 30% each year over the remaining life of 6 years. The company is considering replacing this machine was a new advanced lifting machine that will cost $60,000 to purchase. After one year, this new machine will have a salvage value of $45,000, and after that starts declining in value with declining-balance rate of 20%, similarly to the old machine. Operating and Maintenance costs for the old machine are currently $18,000 increasing by 14% per year. Operating and Maintenance costs for the new machine will initially be $10,000 in the first year increasing by 12% per year. MARR is 12%. When, if needed, should the new machine replace the old one? Problem (5): A Steel manufacturing company purchased three years ago a lifting machine to move steel parts for $45,000. The current value of this machine is $20,000 and will decline by 30% each year over the remaining life of 6 years. The company is considering replacing this machine was a new advanced lifting machine that will cost $60,000 to purchase. After one year, this new machine will have a salvage value of $45,000, and after that starts declining in value with declining-balance rate of 20%, similarly to the old machine. Operating and Maintenance costs for the old machine are currently $18,000 increasing by 14% per year. Operating and Maintenance costs for the new machine will initially be $10,000 in the first year increasing by 12% per year. MARR is 12%. When, if needed, should the new machine replace the old one