A. The minimum EUAC value of the challenger is ( ) (Round to the nearest dollar.)

B. The marginal cost of keeping the defender in service for one more year is ( )(Round to the nearest dollar.)

C . The old assembly machine should be replaced ( )

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A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $25,000 and replaced by a newer model having a purchase price of $43,500; 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 12%, when should the old assembly m achine be replaced? Use the following data table for your analysis. Challenger Defender Market Value 0&M Costs Year Market Value O&M Costs $43,500 30,000 25,000 $9,500 13,500 $25,000 18,000 $15,000 2 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year