When should the conveyor be replaced, Microeconomics

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When should the conveyor be replaced

Problem

Eight years ago, the Blank Block Building 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 BBB's MARR is 12%? The O&M costs for the next 5 years are $5K, $6K, $7K, $8K, and $9K.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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