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An engineer calculated the AW values shown for retaining a presently owned machine additional years A challenger has an ESL of 7 years with Aw

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An engineer calculated the AW values shown for retaining a presently owned machine additional years A challenger has an ESL of 7 years with Aw = $$-86,000 per year Assuming all future costs remain the same, when should the company replace the defender? The MARR is 12% per year. Assume used machines like the one presently owned will always be available AW of AW of the Years Retained Defender, Challenger, -145,000 136,000 96,000 126,000 63,000 -92,000 39,000 -53,000 -49,000 38,000 2 4 5 a) after year 2 b) after year 3 c) after year 4 d) after year 5 Question 9 An engineer calculated the AW values shown for retaining a presently owned machine additional years A challenger has an ESL of 7 years with Aw = $$-86,000 per year Assuming all future costs remain the same, when should the company purchase the Challenger? The MARR is 12% per year. Assume used machines like the one presently owned will always be available AW of AW of the Years Retained Defender, Challenger, -145,000 -136,000 96,000-126,000 63,000 -92,000 39,000 -53,000 -49,000 38,000 2 4 a) after year 2 b) after year 3 c) after year 4 d) never

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