Project Manager at the site read that, at the end of each year, an equipment is worth 25% less than it was at the beginning of the year. After a equipment is three years old, the rate of decline reduces to 15%. Maintenance and operating costs, on the other hand, increase as the age of the equipment increases. Because of the manufacturer's warranty, first-year maintenance is very low. The site decided this is a good economic analysis problem. The Project Manager wants to keep his annual cost of equipments ownership low. The equipment that the Project Manager prefers prefers costs$11,200 new. Should he buy a new or a used equipment and,if used, when would you suggest he buy it, and how long should it be kept? 1 Age of Equipment (years) Maintenance Expense $50 2 150 3 180 4 200 5 300 6 390 7 500