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QUESTION 5 An aluminum fabrication plant in Manitoba is studying a replacement decision for its old waterjet cutting machine, purchased 7 years ago at $

QUESTION 5
An aluminum fabrication plant in Manitoba is studying a replacement decision for its old waterjet cutting machine, purchased 7 years ago at $130,000, with a new more precise waterjet cutting machine. Based on market studies, the old waterjet cutting machine will have to be replaced some time before the end of the fourth year (from now). The market value of the old waterjet cutting machine is currently estimated at $49,000. Other related data for the old waterjet cutting machine are summarized in the table below. The MARR is 10%.
\table[[\table[[Remaining service],[life in years]],\table[[Salvage value],[($)
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