Automated conveyor system

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Eight years ago, the ABC Block Company installed an automated conveyor system for $38,000. When the conveyor is replaced, the net cost of removal will be $2500. The minimum EAC of a new conveyor is $5500. When should the conveyor be replaced if ABC's MARR is 12%? The O&M costs for the next 5 years are $5K, $6K, $7K, $8K, and $9K.

Reference no: EM131809906

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