Assume that it is January $1,2019,$ and that the Mendoza Company is considering the replacement of a machine that has been used for

the past $3$ years in a special project for the company. This project is expected to continue for an additional $5$ years $($i$.$e$.,$ until the end of

$.$ Mendoza will either keep the existing machine for another $5$ years $(8$ years total$)$ or replace the existing machine now with a

new model that has a $5-$year estimated life. Pertinent facts regarding this decision are as follows: