An industrial crane has been in service for several years and management is considering replacing it. It was purchased at a cost of RM160,000. A planning horizon of five years is to be used in the replacement study. The old crane has a current market value of RM30,000. If it is retained, it has to be upgraded at a cost of RM5,000, after which, it is anticipated to have annual operating and maintenance costs of RM70,000. It will have zero market value at the end of five additional years of service. The new crane will cost 25% more than the old crane. A study indicates that the new crane will save about RM10,000 per year in annual operating and maintenance costs compared to the existing crane. It will have a market value of RM50,000 at the end of the planning horizon. If the new crane were purchased, the old crane will be sold to another company. Use a minimum rate of return (before taxes) of 20% per year. a) Draw the cash flow diagrams for the defender and challenger. b) Should the company purchase the new crane? Use the NPW method