A presently owned machine has the projected market value and M&O costs shown below. An outside vendor of services has offered to provide the service of the existing machine at a fixed price per year.

If the presently owned machine is replaced now, the cost of the fixed-price contract will be $315000 per year. If the presently owned machine is replaced at the end of first year, the contract price will be $292950 per year. If the presently owned machine is replaced at the end of second year, the contract price will be $277200 per year. If the presently owned machine is replaced at the end of third year, the contract price will be $267750 per year. If the presently owned machine is replaced at the end of fourth year, the contract price will be $264600 per year.

Determine the last calculated AW of the defender for which it should be replaced with the outside vendor using an interest rate of 10% per year. (If the defender is kept for 4 years, then enter 0 for AW)

Retention Year	Market Value, $	M&O Cost, $ per year
0	630,000
1	441,000	63,000
2	315,000	126,000
3	252,000	189,000
4	189,000	252,000