Eight years ago, the Blank Block Building Com-pany

Chapter , Problem 13-39

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Eight years ago, the Blank Block Building Com-pany installed an automated conveyor system for$38,000. When the conveyor is replaced, the netcost of removal will be $2500. The minimum EACof a new conveyor is $5500. When should the con-veyor be replaced if BBBs MARR is 12%? TheO&M costs for the next 5 years are $5K, $6K, $7K,$8K, and $9K

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