Making pneumatic vibration isolators

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Reference no: EM131561027

Equipment that was purchased by Newport Corporation for making pneumatic vibration isolators post $90,000 three years ago. It has a market value that can be described by the relation $90,000 - 8000 k, where k is the years from time of purchase. Experience with this type of equipment has shown that the operating cost for the first 5 years is $65,000 per year, after which it increases by $6300 per year. The asset's salvage value was originally estimated to be $7000 after a predicted 10 year useful life. Determine the values of P, S, and AOC if a replacement study is done (a) now and (b) 1 year from now.

Reference no: EM131561027

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