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 $33,000 per year. If the presently owned machine is replaced next year or any time after that, the contract price will be $35,000 per year. Determine if and when the defender should be replaced with the outside vendor using an interest rate of 10% per year. Assume used equipment similar to the defender will always be available, but that the current equipment will not be retained more than three additional years.

Retention Year	Market Value, $	M&O Cost, $ per Year
0	32,000
1	25,000	24,000
2	14,000	25,000
3	10,000	26,000
4	8,000

Annual Worth of D1 =

Annual Worth of D2 =

Annual Worth of D3 =

* Round your answer to the nearest whole dollar for each annual worth. include the negative sign and the unit (i.e. $).

ESL for defender n = year(s).