urgent quick answer please hand written

4) Three years ago, Mercy Hospital significantly improved its hyperbaric oxygen (HBO) therapy equipment for advanced treatment of problem wounds, chronic bone infections, and radiation injury. The equipment cost $275,000 then and can be used for up to 3 years more. If the HBO system is replaced now, the hospital can realize $20,000. If retained, the market values and operating costs tabulated are estimated. A new system, made of a composite material, is cheaper to purchase initially at $150,000 and cheaper to operate during the initial years. It has a maximum, life of 6 years, but market value and operating costs change significantly after 3 years of use due to the projected deterioration of the composite material used in construction. Additionally, a recurring cost of $40,000 per year to inspect and rework the composite material is anticipated after 4 years of use, Market values, operating costs and material rework estimates are tabulated. On the basis of these estimates and i=15%, perform a replacement study. What is your decision? (15 points) Year CURRENT HBO SYSTEM Market Value, OC, $ $ 10,000 -50,000 6,000 -60,000 2,000 - 70,000 1 2 3 4 5 6 PROPOSED HBO SYSTEM Market Value, OC $ Material $ Rework, $ 65,000 -10,000 45,000 -14,000 25,000 -18,000 5,000 -22,000 0 -26,000 -40.000 0 -30,000 -40.000 BI E o e 99+