Your facility has a requirement for a very precise wide-band spectrum analyzer. Your current device, SpecA, cost you $10,000 to train your personnel and needs expensive calibration multiple times a year. You are considering a replacement, SpecB, that would have slightly cheaper calibration costs but would have $15,000 in upfront training costs. Your facility uses a MARR of 8%. (a) Use the information provided above and in Tables 3 & 4, calculate the equivalent annual cost, capital costs, and total equivalent annual cost for both of the spectrum analyzers, the current and the potential replacement, for year 1. (b) Based on the tables, should you replace your current spectrum analyzer with the replacement model? If so, when. Provide your reasoning. Table / Tableau 3 - SpecA Year Anne O&M E&E EACCC CAEcapital EACO&M CAEE&E EACTot CAETot ??? 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Salvage Value Valeur de rcupration 150,000.00 $ 135,000.00 $ 121,500.00 $ 109,350.00 $ 98,415.00 $ 88,573.50 $ 79,716.15 $ 71,744.54 $ 64,570.08 $ 58,113.07 $ 52,301.77 $ 47,071.59 $ 42,364.43 $ 38,127.99 $ 34,315.19 $ 30,883.67 $ 20,000.00 $ 20,000.00 $ ??? 24,000.00 $ 25,701.92 $ 21,923.08 $ 47,625.00 $ 28,000.00 $ 24,521.56 $ 23,794.97 $ 48,316.54 $ 32,000.00 $ 23,447.78 $ 25,615.84 $ 49,063.62 $ 36,000.00 $ 22,470.54 $ 27,385.89 $ 49,856.43 $ 40,000.00 $ 21,580.77 $ 29,105.38 $ 50,686.15 $ 44,000.00 $ 20,770.28 $ 30,774.66 $ 51,544.94 $ 48,000.00 $ 20,031.67 $ 32,394.10 $ 52,425.77 $ 52,000.00 $ 19,358.28 $ 33,964.13 $ 53,322.41 $ 56,000.00 $ 18,744.06 $ 35,485.26 $ 54,229.31 $ 60,000.00 $ 18,183.56 $ 36,958.01 $ 55,141.57 $ 64,000.00 $ 17,671.86 $ 38,382.99 $ 56,054.85 $ 68,000.00 $ 17,204.49 $ 39,760.83 $ 56,965.31 $ 72,000.00 $ 16,777.42 $ 41,092.20 $ 57,869.62 $ 76,000.00 $ 16,387.00 $ 42,377.84 $ 58,764.84 $ Table / Tableau 4 SpecB Anne E&E CAEcapital CAEE&E CAETot O&M EACCC EACO&M EACTot Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Valeur de rcupration Salvage Value $ 200,000.00 $ 180,000.00 $ 162,000.00 $ 145,800.00 $ 131,220.00 $ 118,098.00 $ 106,288.20 $ 95,659.38 $ 86,093.44 $ 77,484.10 $ 69,735.69 $ 62,762.12 $ 56,485.91 $ 50,837.32 $ 45,753.58 $ 41,178.23 $ 15,000.00 ??? $ 15,000.00 ??? $ 17,000.00 $ 42,680.77 $ 15,961.54 $ 58,642.31 $ 19,000.00 $ 38,515.92 $ 16,897.49 $ 55,413.41 $ 21,000.00 $ 35,792.52 $ 17,807.92 $ 53,600.44 $ 23,000.00 $ 33,717.57 $ 18,692.94 $ 52,410.51 $ 25,000.00 $ 32,019.09 $ 19,552.69 $ 51,571.78 $ 27,000.00 $ 30,574.79 $ 20,387.33 $ 50,962.12 $ 29,000.00 $ 29,319.12 $ 21,197.05 $ 50,516.17 $ 31,000.00 $ 28,212.23 $ 21,982.07 $ 50,194.30 $ 33,000.00 $ 27,227.52 $ 22,742.63 $ 49,970.15 $ 35,000.00 $ 26,345.90 $ 23,479.01 $ 49,824.90 $ 37,000.00 $ 25,552.90 $ 24,191.49 $ 49,744.40 $ 39,000.00 $ 24,837.14 $ 24,880.41 $ 49,717.56 $ 41,000.00 $ 24,189.34 $ 25,546.10 $ 49,735.45 $ 43,000.00 $ 23,601.78 $ 26,188.92 $ 49,790.70 Your facility has a requirement for a very precise wide-band spectrum analyzer. Your current device, SpecA, cost you $10,000 to train your personnel and needs expensive calibration multiple times a year. You are considering a replacement, SpecB, that would have slightly cheaper calibration costs but would have $15,000 in upfront training costs. Your facility uses a MARR of 8%. (a) Use the information provided above and in Tables 3 & 4, calculate the equivalent annual cost, capital costs, and total equivalent annual cost for both of the spectrum analyzers, the current and the potential replacement, for year 1. (b) Based on the tables, should you replace your current spectrum analyzer with the replacement model? If so, when. Provide your reasoning. Table / Tableau 3 - SpecA Year Anne O&M E&E EACCC CAEcapital EACO&M CAEE&E EACTot CAETot ??? 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Salvage Value Valeur de rcupration 150,000.00 $ 135,000.00 $ 121,500.00 $ 109,350.00 $ 98,415.00 $ 88,573.50 $ 79,716.15 $ 71,744.54 $ 64,570.08 $ 58,113.07 $ 52,301.77 $ 47,071.59 $ 42,364.43 $ 38,127.99 $ 34,315.19 $ 30,883.67 $ 20,000.00 $ 20,000.00 $ ??? 24,000.00 $ 25,701.92 $ 21,923.08 $ 47,625.00 $ 28,000.00 $ 24,521.56 $ 23,794.97 $ 48,316.54 $ 32,000.00 $ 23,447.78 $ 25,615.84 $ 49,063.62 $ 36,000.00 $ 22,470.54 $ 27,385.89 $ 49,856.43 $ 40,000.00 $ 21,580.77 $ 29,105.38 $ 50,686.15 $ 44,000.00 $ 20,770.28 $ 30,774.66 $ 51,544.94 $ 48,000.00 $ 20,031.67 $ 32,394.10 $ 52,425.77 $ 52,000.00 $ 19,358.28 $ 33,964.13 $ 53,322.41 $ 56,000.00 $ 18,744.06 $ 35,485.26 $ 54,229.31 $ 60,000.00 $ 18,183.56 $ 36,958.01 $ 55,141.57 $ 64,000.00 $ 17,671.86 $ 38,382.99 $ 56,054.85 $ 68,000.00 $ 17,204.49 $ 39,760.83 $ 56,965.31 $ 72,000.00 $ 16,777.42 $ 41,092.20 $ 57,869.62 $ 76,000.00 $ 16,387.00 $ 42,377.84 $ 58,764.84 $ Table / Tableau 4 SpecB Anne E&E CAEcapital CAEE&E CAETot O&M EACCC EACO&M EACTot Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Valeur de rcupration Salvage Value $ 200,000.00 $ 180,000.00 $ 162,000.00 $ 145,800.00 $ 131,220.00 $ 118,098.00 $ 106,288.20 $ 95,659.38 $ 86,093.44 $ 77,484.10 $ 69,735.69 $ 62,762.12 $ 56,485.91 $ 50,837.32 $ 45,753.58 $ 41,178.23 $ 15,000.00 ??? $ 15,000.00 ??? $ 17,000.00 $ 42,680.77 $ 15,961.54 $ 58,642.31 $ 19,000.00 $ 38,515.92 $ 16,897.49 $ 55,413.41 $ 21,000.00 $ 35,792.52 $ 17,807.92 $ 53,600.44 $ 23,000.00 $ 33,717.57 $ 18,692.94 $ 52,410.51 $ 25,000.00 $ 32,019.09 $ 19,552.69 $ 51,571.78 $ 27,000.00 $ 30,574.79 $ 20,387.33 $ 50,962.12 $ 29,000.00 $ 29,319.12 $ 21,197.05 $ 50,516.17 $ 31,000.00 $ 28,212.23 $ 21,982.07 $ 50,194.30 $ 33,000.00 $ 27,227.52 $ 22,742.63 $ 49,970.15 $ 35,000.00 $ 26,345.90 $ 23,479.01 $ 49,824.90 $ 37,000.00 $ 25,552.90 $ 24,191.49 $ 49,744.40 $ 39,000.00 $ 24,837.14 $ 24,880.41 $ 49,717.56 $ 41,000.00 $ 24,189.34 $ 25,546.10 $ 49,735.45 $ 43,000.00 $ 23,601.78 $ 26,188.92 $ 49,790.70