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.)

A high-speed electronic assembly machine was purchased two years ago for $50,000. At the present time, it can be sold for $27,000 and replaced by a newer model having a purchase price of $40,000; 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 machine be replaced? Use the ollow ing data table r our analysis. Challenger Defender Year Market Value O&M CostsMarket Value 0&M Costs $40,000 31,000 27,000 $10,500 12,500 $27,000 18,500 $13,500 2