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 SI 28,000, if you keep it for its optimum economic life. Your MARR is 10%. (20 pts, total, partial credit as indicated if detail analysis are shown) 7. (a) What is the optimum economic life for the new Cramit packaging machine? (10 pts, partial credit) A. I year B. 2 years C. 3 years D. 4 years E. 5 years (b) What replacement analysis technique would you use to determine when the old machine be replaced by the new machine? (5 pts, no partial credit) D. ROR or B/C method B. Technique 2 C. Technique 3 A. Technique I (c) When should you buy the new Cramit machine? Why? (5 pts, no partial credit)