3. (6 pts) A construction company purchased a bulldozer 5 years ago for $150,000. It has been depreciated to a book value of $50,000. The Caterpillar Company salesman has proposed replacing it with a new model for $160,000 and taking the present bulldozer in trade for $60,000. It is estimated the current bulldozer will last 5 more years with an annual O&M of $8,000/year and can be sold then for $5,000. The salesman claims the new bulldozer is much more reliable and will only have O&M costs of $3,000/year, last 15 years, and still be salvaged for $10,000. Company MARR is i%. Is this a transaction that should be made this year