ANSWER BOTH.

This table gives the data relevant to a replacement decision: EAC EAC Salvage Maintenance (Capital (Maintenance Costs) $3 000 4 429 6 716 10 440 16 592 Costs) 1 $28 900 $3 000 S33 558 21 921 Year Value Costs Total $36 558 26 349 2 22 670 15 300 11 280 7 800 6 000 12 000 24 000 48 000 3 4 15 482 25 922 13 701 30 293 What is the EAC (Capital Costs) for year 3 at the MARR of 10%? $16 840 $17 622 $18 181 This table gives the data relevant to a replacement decision: EAC EAC Salvage Maintenance (Capital (Maintenance Costs) $3 000 4 429 6 716 10 440 16 592 Costs) 1 $28 900 $3 000 S33 558 21 921 Year Value Costs Total $36 558 26 349 2 22 670 15 300 11 280 7 800 6 000 12 000 24 000 48 000 3 4 15 482 25 922 13 701 30 293 What is the EAC (Capital Costs) for year 3 at the MARR of 10%? $16 840 $17 622 $18 181