Question: For D8=0 with steps thank you! Question 5 A 3-year-old machine purchased by HKCC Company for $200,000 is getting old and unable to meet today's

For D8=0 with steps thank you! Question 5 A 3-year-old machine purchasedFor D8=0 with steps thank you!

Question 5 A 3-year-old machine purchased by HKCC Company for $200,000 is getting old and unable to meet today's market demands. The machine can be upgraded now for $(80,000 + D8 x 1,000) or sold for $(40,000 + D8 x 1,000). The current machine will have an annual operating and maintenance (O&M) cost of $100,000 and a $(30,000 + D8 x 1,000) salvage value in 3 years. If upgraded, the old machine will be retained for only 3 more years, then replaced with a new machine. The replacement machine, which can serve the company now and for at least 8 years, costs $(200,000 + D8 x 1,000). In addition, there are shipping and handling charges of $20,000. Its salvage value will be $(40,000 + D8 x 1,000) for years 1 through 4; $(20,000 + D8 x 1,000) after 5 years; and $(10,000 + D8 x 1,000) thereafter. It will have an annual operating and maintenance cost of $65,000 per year. HKCC Company wants to perform an economic analysis at 15% per year using a 3-year planning horizon

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