A firm owns a pressure vessel that it is contemplating replacing. The old pressure vessel has annual operating and maintenance expenses of $60,000 per year and it can kept for five more years, at which time it will have zero market value. It is believed that $20,000 could be obtained for the old pressure vessel if it were sold now. A new pressure vessel can be purchased for $110,000. The pressure vessel will have an market value of $50,000 in five years and will have annual operating and maintenance expenses of $30,000 per year. Using a before-tax MARR of 20% per year, determine whether or not the old pressure vessel should be replaced Answers Defender PW(20%)= $199,436 Challenger PW(20%)= $189,623 The PW of the challenger is greater (less negative) than the PW of the defender. Thus, old pressure vessel should be replace. Defender PW(20%)= $129,436 Challenger PW(20%)= $200,000 The PW of the defender is greater (less negative) than the PW of the challenger. Thus, old pressure vessel should not be replace Defender PW(20%)= -$305,411 Challenger PW (20%)= $79,500 The PW of the challenger is greater (less negative) than the PW of the defender. Thus, old pressure vessel should be replace Defender PW(20%)= -$200,000 Challenger PW(20%)= $300,000 The PW of the defender is greater (less negative) than the PW of the challenger. Thus, old pressure vessel should not be replace