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5. Your, assignment is to prepare a ATCF replacement analysis study. (25ptos) Challenger: A new machine is under consideration; it will cost $90,000 and have

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5. Your, assignment is to prepare a ATCF replacement analysis study. (25ptos) Challenger: A new machine is under consideration; it will cost $90,000 and have annual operating and maintenance cost of $9,000. The new machine has an economic life of 20 years and a salvage value of $20,000. Use for depreciation straight-line method Defender: if Kept The actual machine was installed 10 years ago at a cost of $80,000. Using a life of 20 year and estimates salvage value for depreciation purposes of $10,000. Now it has a market value (MVo) of $25,000. Annual operating and maintenance cost of $12,000. For depreciation use straight line method. If kept has an economic life of 10 (ten) years and a salvage value of $10,000. For both machines use income tax rate of 40%,and MARR of 8% a. Set up a table for the computation of ATCF for defender and challenger, and determine whether replacement now is economical using AW or EUAC

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