The Acme Corporation has a conveyor belt with a remaining life of 10 years. The conveyor belt can be sold now for $8,000. If the conveyor belt is kept in service, it must be overhauled immediately at a cost of $4,000. Operating and maintenance expenses will be $3,000 per year after the conveyor belt is overhauled. The overhauled conveyor belt will have a zero MV at the end of the 10-year study period. A new conveyor belt can be purchased now for $18,000. The new crane will last for 10 years and will have a $4,000 MV at that time. Operating and annual expenses for the new conveyor belt are $1,000 per year. Acme uses an effective before-tax MARR of 10% per year in evaluating investment alternatives. Using an outsider's viewpoint, should Acme replace the old conveyor belt? Explain the reasoning for decision