Your division is considering the purchase of a Cramit packaging machine for $200,000. You project that the operating and maintenance costs (O&M) will be $50,000 this year and that they will increase by $20,000 per year. The salvage value is expected to be $150,000 at any time you sell the machine for the next 5 years. Your old packaging machine will have a EUAC of $128,000, if you keep it for its optimum economic life. Your MARR is 10%. What is the optimum economic life for the new Cramit packaging machine? 1 year 2 years 3 years 4 years 5 years What replacement analysis technique would you use to determine when the old machine be replaced by the new machine? Technique 1 Technique 2 Technique 3 ROR BC method When should the old machine be replaced? Now 1 year 2 years 3 years 4 years Pollution control equipment must be purchased to remove the suspended organic material from liquid being discharged from a vegetable packing plant. Two alternative pieces of equipment are available that would accomplish the task. A Filterco unit costs $7000 and has a 5-year useful life. A Duro unit, on the other hand, costs $10,000 but will have a 10-year useful life. With inflation, equipment costs are rising at 5% per year, compounded annually, so when the Filterco unit needed to be replaced, the cost would be much more than $7000. Based on a 10-year analysis period with identical replacement of Filterco unit in year 5, and a MARR of 20%, in actual dollars basis which pollution control equipment should be purchased? Must show your analysis for credit