Problem 3: Equipment Replacement Analysis Given: Contractor is interested in replacing a dump truck. The costs of three replacement alternatives are provided in the table. Market Value of the existing truck is $15,000 and Salvage Value of the New Replacement option is $40,000. The costs associated with three truck replacement alternatives are provided in the table below. EOY Defender(Keep) Challenger1 (Replace) Challenger2 (Lease) Initial -$50,000 $120,000$15,000 (Market Value) $20,000 (pmt) $15,000 (Market Value) (pmt) EOY1-4:-$20,000 (O&M) EOY1:-$18,000 EOY2-5: Increase $1K/yr. (O&M) (O&M) EOY 1:-$35,000 EOY 1-5:-$15,000 EOY2-5: Increases 20% per year (Salvage) EOY5: $40,000 Find: EUAC for each alternative. MARR-10%. Use Cash Flow Approach, which Alternative is preferred