Definition of alternatives: A: Retain an already owned machine (defender) in service for eight more years. B. Sell the defender and lease a new one (challenger) for eight years Alternative A (additional information): Cost of defender five years ago =$475,000 BV now =$111,550 Estimated MV eight years from now =$55,000 Present MV =$160,000 Use the PW method to select the better of the following alternatives. Assume that the defender was installed five years ago. The MARR is 8% per vear. Click the icon to view the additional information about the alternatives. Click the icon to view the interest and annuity table for discrete compounding when MARR =8% per year. The PW Defender is $ (Round to the nearest thousands dollar.) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Discrete Compounding; i=8%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \\ \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \\ \end{tabular} & \begin{tabular}{l} Compound \\ Amount \\ Factor \\ \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \end{tabular} \\ \hline N & \begin{tabular}{c} To Find F \\ Given P \\ F/P \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ P/F \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ FlA \\ \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ P/A \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ A/F \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ A/P \end{tabular} \\ \hline 1 & 1.0800 & 0.9259 & 1.0000 & 0.9259 & 1.0000 & 1.0800 \\ \hline 2 & 1.1664 & 0.8573 & 2.0800 & 1.7833 & 0.4808 & 0.5608 \\ \hline 3 & 1.2597 & 0.7938 & 3.2464 & 2.5771 & 0.3080 & 0.3880 \\ \hline 4 & 1.3605 & 0.7350 & 4.5061 & 3.3121 & 0.2219 & 0.3019 \\ \hline 5 & 1.4693 & 0.6806 & 5.8666 & 3.9927 & 0.1705 & 0.2505 \\ \hline 6 & 1.5869 & 0.6302 & 7.3359 & 4.6229 & 0.1363 & 0.2163 \\ \hline 7 & 1.7138 & 0.5835 & 8.9228 & 5.2064 & 0.1121 & 0.1921 \\ \hline 8 & 1.8509 & 0.5403 & 10.6366 & 5.7466 & 0.0940 & 0.1740 \\ \hline 9 & 1.9990 & 0.5002 & 12.4876 & 6.2469 & 0.0801 & 0.1601 \\ \hline 10 & 2.1589 & 0.4632 & 14.4866 & 6.7101 & 0.0690 & 0.1490 \\ \hline 11 & 2.3316 & 0.4289 & 16.6455 & 7.1390 & 0.0601 & 0.1401 \\ \hline 12 & 2.5182 & 0.3971 & 18.9771 & 7.5361 & 0.0527 & 0.1327 \\ \hline 13 & 2.7196 & 0.3677 & 21.4953 & 7.9038 & 0.0465 & 0.1265 \\ \hline 14 & 2.9372 & 0.3405 & 24.2149 & 8.2442 & 0.0413 & 0.1213 \\ \hline 15 & 31772 & 3152 & 271521 & 85595 & & 1168 \\ \hline \end{tabular}