11.8 A machine tool purchased 2 years ago for $40,000 has a market value best described by the relation$40,000 – 3000 k, where k is the number of years from

time of purchase. Experience with this type of asset has shown that its annual operating cost is described by the relation $30,000+1000 k. The asset's salvage value was originally estimated to be $10,000 after a predicted 10-year useful life. Determine the current estimates for P, 5, and AOC for a replacement study, assuming it will be kept only 1 more year, which will be the third year of ownership.