.An existing robot is used in commercial material lab. Due to service requirement and upgrade is necessary at a cost of $5,000. A new robot will be consider for possible replacement. MARR before income tax is 20%. More information below. Should the existing robot be replaced? (Determine EUAC defender and EUAC challenger, and Make a decision)

Defender Current market value Upgrade cost(year 0) Annual Expenses Useful life(years) Market Value at the end of Year 6 Challenger Purchase Cost Installation Cost Annual Expenses Useful life(years) Market Value at the end of Year 6 $45,000 5,000 (Geometric series) $1,500 the first year, from the Second, will increase by 6%/yr. -$1.000 (Cost of disposal) $60,000 $5,500 (Arithmetic Series) $1,000 in year one, and increase Second year by $200/yr $8,000