A machine purchased 1 year ago for $85,000 costs more to operate than anticipated. When purchased, the machine was expected to be used for 10 years with annual maintenance costs of $22,000 and a...

A machine purchased 1 year ago for $85,000 costs

more to operate than anticipated. When purchased,

the machine was expected to be used for 10 years

with annual maintenance costs of $22,000 and a $10,000 salvage value. However, last year, it cost

the company $35,000 to maintain it, and these costs

are expected to escalate to $36,500 this year and increase

by $1500 each year thereafter. The market

value is now estimated to be $85,000 − $10,000k,

where k is the number of years since the machine

was purchased. It is now estimated that this machine

will be useful for a maximum of 5 more years. A

replacement study is to be performed now. Determine

the values of P, n, AOC, and S of this defender.