Question: SQL Inc. is interested in knowing when to replace equipment. Based on the following information, and considering an interest of 10% per year, determine the

SQL Inc. is interested in knowing when to replace equipment. Based on the following information, and considering an interest of 10% per year, determine the economic life of the new asset. Then determine when the existing asset should be replaced.

YR	Marginal cost	EUAC new equip.
1	$3,000	$6,500
2	$3,150	$4,150
3	$3,400	$3,200
4	$3,800	$3,100
5	$4,250	$3,150
6	$4,950	$3,400

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