Replacement Technique 1 13-11 A machine tool, which has been used in a plant for 10 years, is being considered for replacement. It cost 444 CHAPTER 13: REPLACEMENT ANALYSIS 13-10 ) $9500 and was depreciated by MACRS deprecia- tion using a 5-year recovery period. An equipment dealer indicates that the machine has no resale value. Maintenance on the machine tool has been a prob- lem, with an $800 cost this year. Future annual maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service? Replacement Technique 1 13-11 A machine tool, which has been used in a plant for 10 years, is being considered for replacement. It cost 444 CHAPTER 13: REPLACEMENT ANALYSIS 13-10 ) $9500 and was depreciated by MACRS deprecia- tion using a 5-year recovery period. An equipment dealer indicates that the machine has no resale value. Maintenance on the machine tool has been a prob- lem, with an $800 cost this year. Future annual maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service