"Replacement Analysis - Chapter 13" A machine was installed 5 years ago. Its market value is now $15,000 and its market value is expected to decline as follows: This year, its annual costs (operation and maintenance) are estimated as $1, 500, but will increase by $ 1,000/year thereafter (so after 5 years these annual costs would be $5, 500). A new machine is now available for $20,000. It has no annual costs over its five-year minimum cost life. Using an 9% MARR, when (if at all) should the existing machine be replaced with the new machine? Compound interest tables are supplied at the end of the exam