Excelon is looking for cost-cutting measures. One of the engineers determined that the equivalent annual worth of an existing machine over its remaining useful life of 1 or 2 years will be

$70,000 per year. The engineer also determined that used machines like the one currently in use are no longer available. However, the machine can be replaced with one that is more advanced that will have an AW of $80,000 if it is kept for 2 years or less, $75,000 if it is kept between 3 and 4 years, and $65,000 if it is kept for 5 to 10 years. If the company uses a 3-year planning period and an interest rate of 15% per year, when should the company replace the machine – now or in 2 years – and at what AW for the next 3 years?