\fSingle Payment Unitona Series Compound Present Compound Present Sinking Capital Amount Worth Factor Factor Factor Factor To Find To Find P o Find 8 To Find A to Find A Given P Given F Given a Given A Given & Given P 1.0800 0.9259 1.0000 0.9259 1.0000 1.0800 1.1664 0.8573 2.0800 1.7833 0.4808 0.5608 1.2597 0.7938 3.2464 2.5771 0.3080 0.3880 1.3605 0.7350 4.5061 3.3121 0.2219 0.3019 1.4693 0.6806 5.8666 3.9927 0. 1705 0.2505 1.5869 0.6302 7.3359 4.6229 0.1363 0.2163 1.7138 0.5835 8.9228 5.2064 0.1121 0.1921 1.8509 0.5403 10.6366 5.7466 0.0940 0.1740 1.9990 0.5002 12.4876 6.2469 0.0801 0. 1601 2.1589 0.4632 14.4866 6.7101 0.0690 0.1490 2.3316 0.4289 16.6455 7. 1390 0.0601 0. 1401 2.5182 0.3971 18.9771 7.5361 0.0527 0.1327 2.7196 0.3677 21.4953 7.9038 0 0465 0.1265 2.9372 0 3405 24.2149 8.2442 0.0413 0.1213 3.1722 0.3152 27. 1521 8.5595 0.0368 0.1168no The PW of the ATCFs through year k, PW,, for a defender (three-year remaining useful life) and a challenger (five-year useful life) are given in the table provided. Assume the after-tax MARR is 8% per year. On the basis of this information, answer the following questions: a. What are the economic life and the related minimum EUAC when k- NA , for both the defender and the challenger? b. Assume an infinite analysis period with repetitive cycles of replacement with challenger (every three years) starting at the end of the second year, When should the challenger (based on the present analysis) replace the defender? Click the icon to view the table for PW of the ATCFs through year k, PWk, for a defender and a challenger. Click the icon to view the interest and annuity table for discrete compounding when MARR - 8% per year. a. The economic life for the defender is |year(s) (Round to the nearest whole number) The corresponding minimum EUAC value is $|. (Round to the nearest dollar.) The economic life for the challenger is | year(s). (Round to the nearest whole number.) The corresponding minimum EUAC value is $| | (Round to the nearest dollar.) b. Choose the correct statement below. O A. The defender should be kept longer than the apparent economic life as long as its marginal cost exceeds the average EUAC for the best challenger, O B. The defender should be kept longer than the apparent economic life as long as its marginal cost is less than the minimum EUAC for the best challenger. O C. The defender should be kept longer than the apparent economic life as long as its average cost exceeds the minimum EUAC for the best challenger. O D. The defender should be replaced after the apparent economic life. Based on the PW analysis, the defender should be kept for | | year(s) before being replaced by the challenger, (Round to the nearest whole number.) A
