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A construction company wants to determine how much longer an equipment it owns should remain in service before it is replaced by a new one.

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A construction company wants to determine how much longer an equipment it owns should remain in service before it is replaced by a new one. The company's before tax cost of capital (MARR) is 10% per year. The old equipment is currently two years old, originally cost $2,000, and has a present realizable MV of $1,000. If kept, its MVs and annual expenses are expected to be as follows: Year.k MV at EOY Annual Expenses, Ek k k 1 $ $ 800 825 2. $ 600 $ 450 3 $ 990 $ 1,100 $ 1,300 4 $ 300 The new equipment will require an investment of $4,000 and is expected to have year-end MVs and annual expenses as shown below: Year.k MV at EOY Annual Expenses, Ek k 1 2 $ 3,000 $ 2,500 $ 2,000 $ 1.750 $ 200 $ 300 $ 600 $ 1.000 3 4 1.500 1,500 For the old equipment (defender), what is the total (Marginal) cost for year 3 (TC3)? For the new equipment (challenger), what is the EUAC through Year 3? Please only fill in the number and round to the nearest integer. A construction company wants to determine how much longer an equipment it owns should remain in service before it is replaced by a new one. The company's before tax cost of capital (MARR) is 10% per year. The old equipment is currently two years old, originally cost $2,000, and has a present realizable MV of $1,000. If kept, its MVs and annual expenses are expected to be as follows: Year.k MV at EOY Annual Expenses, Ek k k 1 $ $ 800 825 2. $ 600 $ 450 3 $ 990 $ 1,100 $ 1,300 4 $ 300 The new equipment will require an investment of $4,000 and is expected to have year-end MVs and annual expenses as shown below: Year.k MV at EOY Annual Expenses, Ek k 1 2 $ 3,000 $ 2,500 $ 2,000 $ 1.750 $ 200 $ 300 $ 600 $ 1.000 3 4 1.500 1,500 For the old equipment (defender), what is the total (Marginal) cost for year 3 (TC3)? For the new equipment (challenger), what is the EUAC through Year 3? Please only fill in the number and round to the nearest integer

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