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A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $25,000 or it can

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A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $25,000 or it can be kept in service for one more year with cash flows as shown in the table (defender). The potential challenger to replace this machine has a purchase price of $38,500 and a usefule life of not more than 2 years with cash flows as shown in the table. If the belore tax MARR is 12%, answer the two questions below: Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. 1. The EUAC of the challenger for the two years of service is A. $21,139 B. $20,620 C. $25,052 D. $21,720 E. $23,094 2. The marginal cost of keeping the defender in service for one more year is A. $23.500 B. $26,500 C. $10,040 D. $32,500 E. $11,000

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