A conveyor system costs $$110,000$ to install. The salvage value of the conveyor system decreases by $$20,000$ each year until its

salvage value is $$0,$ at which point it no longer decreases. The cost to operate and maintain the conveyor system the first year is

$$20,000$; this cost increases by $7\%$ per year. What is the optimal replacement interval and minimum EUAC for the conveyor system,

assuming a MARR of $15\%$ is used?

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ORI:

years

EUAC: $

Carry all interim calculations to $5$ decimal places and then round your final answers to a whole number. The tolerance is $\backslash$pm $10$ for

the EUAC:

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Hint

Assistance Used

Construct an Excel@ table that computes the EUAC for different values of $n.$ This will help you to find EUAC: from which you

can deduce the optimal replacement interval.