Problem 4 (25%) A bottling machine cost $60 000 to purchase and $100 000 to install seven years ago. The market value is now $33 000, and this will decline by 12% of its current value each year for the next three years. Operating and maintenance costs are estimated to be $3 400 this year and expected to increase by $500 per year. a) How much should the EAC of a new bottling machine be over its economic life to justify replacing the old one sometime in the next three years? The MARR is 10% b) The EAC of the new machine turns out to be $10 300 for a 10-year life. Should the old machine be replaced within the next three years? If so when