Big-J Construction Company, Inc. (Big-J CC) is conducting a routine periodic review of existing field equipment. They use a MAAR of 20%. This includes a replacement evaluation of a paving machine now in use. The machine was purchased 3 years ago for $200,000, The paver's current market value is $120,000, and yearly operating and maintenance costs are as follows.
![1861_Data for a new paving machine.png](https://secure.tutorsglobe.com/CMSImages/1861_Data for a new paving machine.png)
Data for a new paving machine have been analyzed. Its most economic life is at 8 years, with a minimum EUAC of $62,000. When should the existing paving machine be replaced?