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A manufacturing plant is considering the purchase of a new filter press can be purchased for...

A manufacturing plant is considering the purchase of a new filter press can be purchased for $30,000 and a salvage value of $10,000. The operating costs in the 1st year are $7,000. For the remaining years these costs increase each year by $3,000 over the previous year's operating costs. The filter press has a maximum life of 8 years without any major repair. The firm's MARR is 20%. What is the optimum replacement interval for this filter press?

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