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Please show work step by step, no excel. Thank you! A machine that costs $10,000 new...

Please show work step by step, no excel. Thank you!

A machine that costs $10,000 new can be replaced after being used from four to seven years. Annual maintenance costs are identical for all possible replacement cycles. The machine has a cost of capital of 12%. The alternative net salvage values at the end of four to seven years of use are, respectively, $3,800, $2,800, $1,000, and -$1,000. Ignoring taxes and inflation, what is the optimal replacement cycle?

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