Should the existing pelletizer be replaced

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Reference no: EM131356368

Maryhill Alines has a pelletizer that it is considering for replacement. Every three years it is overhauled at considerable cost. It is due for an overhaul this year. Evelyn, the company mining engineer, has calculated that the sum of the operating and capital costs for this year for the pelletizer are significantly more than the EAC for a new pelletizer over its service life. Should the existing pelletizer be replaced?

Reference no: EM131356368

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