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Suppose that, for the earlier compressor illustration, it is expected that the standard assumptions are not met as follows a) A compressor is needed for

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Suppose that, for the earlier compressor illustration, it is expected that the standard assumptions are not met as follows a) A compressor is needed for only 12 years b) The replacement for compressor II is expected to cost $14,000 rather than $ 8,000, and its salvage value after 3 years' service (end of the 12th year of study) is expected to be $ 400. Compare the two compressors by the annual cost method. CR = (P-S) i(1 + i)" ] (1+i)n-1 + Suppose that, for the earlier compressor illustration, it is expected that the standard assumptions are not met as follows a) A compressor is needed for only 12 years b) The replacement for compressor II is expected to cost $14,000 rather than $ 8,000, and its salvage value after 3 years' service (end of the 12th year of study) is expected to be $ 400. Compare the two compressors by the annual cost method. CR = (P-S) i(1 + i)" ] (1+i)n-1 +

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