2. .An existing robot is used in commercial material lab. Due to service requirement and upgrade is ( necessary at a cost of $5,000. A new robot will be consider for possible replacement. M income tax is 8%. More information below. Should the existing robot be replaced? Determine PW defender and PW challenger, and Make a decision. Draw the cash fl Defender Current market value Upgrade cost(year 0) Annual Expenses $45,000 5,000 Geometric series) $1,500 the second year, from the aandL-pe' year, will increase by 6%/yr Useful life(years) Market Value at the end of Year 12 12 $5,000 Challenger Purchase Cost Installation Cost Annual Expenses $60,000 $5,500 (Arithmetic Series-Arithmetic Gradient) $1,000 in the first year, and increase From the Third (3) year by $200lyr 12 Useful life(years) Market Value at the end of Year 12 $8,000