9-2. An existing robot can be kept if $3,000 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. The estimates shown in Table P9-2 have been developed for both the defender and the challenger.

The company’s before-tax MARR is 12% per year.

Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time. (9.7)