The cost characteristics of a CO testing machine that was purchased 5 years ago for $100,000 are shown below. The equation to determine the AW of retaining the tester one more year and then replacing it is:

(a) AW = ˆ’15,000(A/P,i,1) ˆ’ 54,000 + 10,000(A/F,i,1)

(b) AW = ˆ’100,000(A/P,i,6) ˆ’ 54,000 + 10,000(A/F,i,6)

(c) AW = ˆ’60,000(A/P,i,1) ˆ’ 42,000 + 40,000(A/F,i,1)

(d ) AW = ˆ’100,000(A/P,i,5) ˆ’ 42,000 + 15,000(A/F,i,5)

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Salvage Value at End of Year, $ M&O Costs, Machine Age, Years from Purchase $ per Year 42,000 60,000 47,000 40,000 3 49,000 31,000 50,000 4 24,000 52,000 15,000 54,000 10,000 63,000 10,000 67,000 10,000