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A CNC milling machine was purchased by Proto Tool and Die 10 years ago for $75,000. The existing machine can be sold now for an

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A CNC milling machine was purchased by Proto Tool and Die 10 years ago for $75,000. The existing machine can be sold now for an unknown amount $X or used for 3 more years at an annual operating cost of $63,000 and a salvage value of $25,000. A challenger will cost $130,000 with an economic life of 6 years and an operating cost of $32,000 per year. Its salvage value will be $45,000. Assume an interest rate of 12% per year. Calculate the AW of the Challenger if it is kept for 6 years. $-58, 075 $-48, 075 $-68, 075 $-32,000

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