4. The replacement of a planing machine is being consi dered by the Reardorn Furniture Company. (There is an indefinite future challenger will cost $3 12 years and a $2.000 $16.000 next three years are as follows: need for this type of machine.) The best 0,000 for installation and will have an estimated economic life of at that time. It is estimated that annual expenses will average present MV of $4.000. Data for the defender for the per year. The defender has a MV at End of Year S3,000 Expenses during the Year $20,000 25,000 30,000 Year 2 2,500 3 2,000 Using a before-tax interest rate of 15% per year, make a comparison to d whether it is economical to make the replacement now. etermine