The AW of the current process to make motion controllers is $62,000 per year. A replacement process under consideration has estimates of P = $64,000, AOC = $38,000, and n = 3 years. Three engineers have predicted what the salvage value of the new process may be in 3 years: $10,000, $14,500, and $18,000.

f sensitive, what is the lowest salvage value that justifies the replacement process (MARR of 15% per year)?

The lowest salvage value that justifies the replacement is $ 18000 X