A replacement rock drill costing $400,000 is being considered at a local quarry. The old existing drill and the new replacement drill both have estimated operating costs of $110,000 per year. However, the new drill is expected to reduce maintenance costs from $120,000 per year to $60,000 per year. Due to the inability to obtain standard replacement parts, the old drill has no salvage value. The new drill has an estimated salvage value of $100,000 at the end of its useful life (in 15 years). The drill manufacture is also offering to reduce the price of the new drill to $200,000 if the mine operator agrees to contact out the maintenance cost at a guaranteed fixed annual cost of $85,000 per year (paid to the manufacturer in each of the 15 years). The corporate MARR is 8%. Please rank the three options (keep existing unit, replace without maintenance agreement, and replace with maintenance agreement) in order of economic attractiveness. Most Attractive Second Choice