Answer: a) 1 yr, $3000 b) 3 yrs, $3300 c) 2 yrs more defender

13-32 SHO J Enterprises has asked you to look at the following data. The interest rate is 10%. Marginal Cost Data EUAC if Kept n Years Year, n Defender Challenger 3000 3150 3400 3800 4250 4950 $4500 4000 3300 4100 4400 6000 2 4 6 (a) What is the defender's lowest EUAC? (b) What is the challenger's economic life? (c) When, if at all, should we replace the defender with the challenger