A machine that was purchased 3 years ago for $140,000.is.now too slow to satisfy increased demand. The machine can be upgraded now for $70,000 or sold to a smaller company for $40,000. The current machine will have an annual operating cost of $85,000 per year. If upgraded, the presently owned machine will be kept in service for only 3 more years, then replaced with machine which will be used in the manufacture of several other product lines. This replacement machine which will serve the company now and for at least 8 years will cost $220,000. Its salvage value will be $50,000 for years 1 through 5; S20,000 after 6 years; and $10,000 thereafter. It will have an estimated operating cost of $65,000 per year. The company asks you to perform an economic analysis at 20% per year using a 5-year time horizon. Should the company replace the presently owned machine now, or do it 3 years from now? What are the AW values? (25 points)