8. 9.20 (Spreadsheet exercise) A $500,000 piece of laser-driven, fruit cleaning equipment is being rapidly challenged by new technology. Current estimates for the remaining 3 years of possible retention of this defender are:     Defender: Market value: $60,000 now, but zerothereafter     AOC estimates: $100,000 next year,increasing by $30,000 per yearthereafter     Retention period: Maximum of 3 moreyears An external contractor will install and operate cutting-edge equipment in a turnkey operation for $175,000 per year for up to 4 years. This price is guaranteed for 18 months, after which the contract price increases to $200,000 per year. The MARR is 12% per year. 1. Perform the ESL and replacement analysis to retain the defender or bring in the contractor. 2. Management did not want to abandon working equipment or have external contract workers inside the plant. Therefore, the contract offer was declined with the intent to keep the equipment for 3 full years and reconsider the contract, knowing it will be more expensive. However, during the next year there was an unexpected additional $100,000 operating cost, making AOC for the year total $200,000. If all other estimates are unchanged, was the retention decision correct or should the contract have been taken?