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Please help me 4(30 points) A machine purchased 9 years ago for $45,000 is expected to have the salvage values and operating costs shown below

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4(30 points) A machine purchased 9 years ago for $45,000 is expected to have the salvage values and operating costs shown below for additional years of service. It can be immediately for $9,000 by placing an ad in a trade magazine. Table 1: Costs for Defender Operating Cost, Salvage Value at Year, i -50,000 -53,000 -60,000 End of Year S 6,000 4,000 1,000 2 a) Draw a cash flow diagram for option of keeping the Defender for three (3) years 12% interest. b) The table below shows the present value of keeping the defender for i years at l Determine the ESL of the Defender. PV ifkeep vears -48,286 92,705 -128,889 Year, i ESL (Economic Service Life), and have an annual operating cost (AOC) of $35,000 per year At an interest rate of 12% per year, determine the annual worth (AW) of the Challenger for its ESL c) A replacement machine will cost $125,000, have a $10,000 salvage value after its 10-year At an interest rated f12%per year, determine if the company should replace the defender with the challenger and, if so, when. d) 4

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