Solve using replacement analysis.

A company bought some mixing equipment, but due to the growth of its production needs, it currently requires a larger capacity, so it is evaluating the option of acquiring an additional identical equipment or acquiring one with double the capacity. The table shows the information for each asset. Compare the assets using i=10% and a study period of 8 years, which is the remaining useful life for the current mixer.

option 1 active P=20,000 CAO= 2,000 VS= 5,000 additional P= 35,000 CAO=2,000 VS=7,500 option 2 double capacity P=57,000 CAO=3,200 VS=12,000