A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $24,000 and replaced by a newer model having a purchase price of $44,000; or it can be kept in service for a maximum of one more year. The new assembly machine, if purchased, has a useful life of not more than two years. If the before-tax MARR is 18%, when should the old assembly machine be replaced? Use the following data table for your analysis.

What is the minimum EUAC value of the challenger is?

Year Challenger Market Value O&M Costs $44,000 31,000 $8,000 24,000 14,000 Defender Market Value O&M Costs $24,000 17,000 $15,000 0 1 2