USE OF EXCEL IS ALLOWED 2. (20 points) Manufacturas Monarca uses an automated packaging system in their finishing area. The packaging system costs $400,000. Its market value will be $350,000 at the end of the first year and will drop 10% per year thereafter to a minimum of $33,000. Operating costs are $5,000 the first year, increasing by 9% each year thereafter maintenance costs are a gradient series of $2,500. MARR is 10%. Determine the optimum replacement interval. SHOW EXCEL EQUATIONS USE OF EXCEL IS ALLOWED 2. (20 points) Manufacturas Monarca uses an automated packaging system in their finishing area. The packaging system costs $400,000. Its market value will be $350,000 at the end of the first year and will drop 10% per year thereafter to a minimum of $33,000. Operating costs are $5,000 the first year, increasing by 9% each year thereafter maintenance costs are a gradient series of $2,500. MARR is 10%. Determine the optimum replacement interval. SHOW EXCEL EQUATIONS