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Replacement analysis 1318 A $20,000 machine will be purchased by a com- pany whose interest rate is 10%. It will cost $5000 to install, but

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Replacement analysis
1318 A $20,000 machine will be purchased by a com- pany whose interest rate is 10%. It will cost $5000 to install, but its removal costs are insignificant. What1 is its economic life if its salvage values and O&M costs are as follows? Year 2 4 S $16K $13K $11K S10K $9.5K 0&M $5K S8K $11K $14K $17K

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