Solve the following problems on replacement analysis, comparing alternatives and depreciation. Solve the problem MANUALLY

The existing pump, Pump A, including driving motor with integrated controls, cost 170,000 ve years ago. An estimated MV of 7,500 could be obtained for the pump if it were sold now. Some reliability problems have been experienced with Pump A, including annual replacement of the impeller and bearings at a cost of 17,500. Annual operating and maintenance expenses have been averaging 32,500. Annual insurance and property tax expenses are 2% of the initial capital investment. It appears that the pump will provide adequate service for another nine years if the present maintenance and repair practice is continued. It is estimated that if this pump is continued in service, its nal MV after nine more years will be about 2,000. An alternative to keeping the existing pump in service is to sell it immediately and to purchase a replacement pump, Pump B, for 160,000. An estimated MV at the end of the nine-year study period would be 20% of the initial capital investment. Operating and maintenance expenses for the new pump are estimated to be 30,000 per year. Annual taxes and insurance would total 2% of the initial capital investment. (ROR = 10 %)