Given the following information for the challenger and defender, should the existing robot be replaced? Assume that a robot will be needed for and indefinite period and MARR= 25%.

using excel

a) what is the EUAC of the Defender?

b) what is the EUAC of the Challenger?

Defender			Challenger
Current MV	$ 40,200		Investment	$ 56,500
Annual Expenses	$1400 in year 1		Annual Expenses	$1000 in year 1
	Increasing by			Increasing by
	8%/year			$150/year
Useful Life	6		Useful life	10
MV at end of life	-$1,500		MV at end of life	$ 7,000