A used old model testing machine was donated to a University by a company one year ago. It is expected that this machine will continue to serve its function for ten more years provided that a maintenance agreement is signed with another firm requiring 10 yearly payments. The first payment of $10,000 will be due now (i.e. at the end of year 0, which is the beginning of year 1. The following payments will decrease in magnitude by 3% per year and these will be paid at the beginning of years 2 to 10 (i.e. the second payment will be 3% less than the first payment, etc.). A new model can be leased for ten years. The terms of lease include maintenance. For leasing the new model, a payment of $19,000 will be due at the beginning of year 1 (i.e. now) and another $19,000 will be due at the end of year 1. An additional $38,000 will be due at the end of year 3. Should the old model machine be replaced now, at MARR = 10%? (i) Use present worth (PW) method. (ii) Use incremental PW method.