a) determine the economic life of the challenger and enter its EUAC for that year

b) determine the total marginal cost for the defender in year 3.

A bus company has a four-year-old natural gas powered bus that was initially purchased for $80,000. This bus can be kept in service for an additional four years, or it can be sold for $30,000 and replaced by a new one. The purchase price of the replacement machine is $80,000. The projected MVs and operating and maintenance costs over the four year planning horizon are shown in the table that follows. Assuming the MARR is 11%, Defender: Market value at EOY EOY1: $24,000 EOY2: $18,000 EOY3: $6,000 EOY4: $0 Defender: Operating and maintenance costs at EOY EOY1: $23,000 EOY2: $25,300 EOY3: $32,200 EOY4: $36,800 Challenger: Market value at EOY EOY1: $64,000 EOY2: $60,000 EOY3: $48,000 EOY4: $40,000 Challenger: Operating and maintenance costs at EOY EOY1: $20,000 EOY2: $22,000 EOY3: $25,000 EOY4: $30,000 A bus company has a four-year-old natural gas powered bus that was initially purchased for $80,000. This bus can be kept in service for an additional four years, or it can be sold for $30,000 and replaced by a new one. The purchase price of the replacement machine is $80,000. The projected MVs and operating and maintenance costs over the four year planning horizon are shown in the table that follows. Assuming the MARR is 11%, Defender: Market value at EOY EOY1: $24,000 EOY2: $18,000 EOY3: $6,000 EOY4: $0 Defender: Operating and maintenance costs at EOY EOY1: $23,000 EOY2: $25,300 EOY3: $32,200 EOY4: $36,800 Challenger: Market value at EOY EOY1: $64,000 EOY2: $60,000 EOY3: $48,000 EOY4: $40,000 Challenger: Operating and maintenance costs at EOY EOY1: $20,000 EOY2: $22,000 EOY3: $25,000 EOY4: $30,000