Use the PW method to select the better of the following alternatives:

Assume that the defender was installed five years ago. The MARR is 10% per year.
Definition of alternatives:
A: Retain an already owned machine (defender) in service for eight more years.
B: Sell the defender and lease a new one (challenger) for eight years.
Alternative A(additional information):
Cost of defender five years ago = $500,000
BV now = $111,550
Estimated MV eight years from now = $50,000
Present MV = $150,000