The engineering firm is considering to keep the crane for


The engineering firm is considering to keep the crane for future projects. The cost of the crane is the one described in problem 2 (including transportation costs). Its market value at the end of year one will be $300,000 decreasing by 15% every year to minimum of $100,000. The crane operating costs will be a gradient series of $25,000. The maintenance costs will be equal to 20% of the operating costs. MARJR. is 10%. Determine the optimum replacement interval.

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Business Economics: The engineering firm is considering to keep the crane for
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