Ten years ago, the Cool Chemical Company installed a heat exchanger for $10,000. Maintenance costs have been increasing, and they will be $1000 this year. The cost of removal will be $1500 more than the heat exchanger is worth as scrap metal. The replacement the company is considering has an EUAC of $800 at its most economic life. If the company’s minimum attractive rate of return (MARR) is 10%, should the heat exchanger be replaced now?

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