Use the data below to determine the optimal replacement cycle for the facility (representing EAC application, k=1,000 won unit) and graph the relationship between capital recovery costs, operating costs and total costs.

a) Facility investment cost: 11,000k
b) Operating expenses for the initial year: 5,000k (increased by 500k per year)
c) Residual value: 1,000k
d) MARR: 10%rn

Answer rating: 100% (QA)

The optimal replacement cycle is 5 years The capital recove... View the full answer