Required information State-of-the-art digital imaging equipment purchased 2 years ago for $50,000 had an expected useful life of 5 years and a $5000 salvage value. After its poor installation performance, it was upgraded for $20,000 1 year ago. Increased demand now requires another upgrade for an additional $22,000 so that it can be used for three more years. Its new annual operating cost will be $31,000 with a $10,000 salvage after the 3 years. Alternatively, it can be replaced with new equipment costing $61,500, an estimated AOC of $16,500, and an expected salvage of $22,500 after 3 years. If replaced now, the existing equipment can be traded for only $7,500. Use a MARR of 12% per year. Calculate the AWs and determine whether the company should retain or replace the defender now. The company should (Click to select) retain defender replace defender with challenger Check my work Required information State-of-the-art digital imaging equipment purchased 2 years ago for $50,000 had an expected useful life of 5 years and a $5000 salvage value. After its poor installation performance, it was upgraded for $20,000 1 year ago. Increased demand now requires another upgrade for an additional $22,000 so that it can be used for three more years. Its new annual operating cost will be $31,000 with a $10,000 salvage after the 3 years. Alternatively, it can be replaced with new equipment costing $61,500, an estimated AOC of $16,500, and an expected salvage of $22,500 after 3 years. If replaced now, the existing equipment can be traded for only $7,500. Use a MARR of 12% per year. Based on the poor experience with the current equipment, assume the person conducting the analysis decides the challenger may be kept for only 2 years, not three, with the same AOC and salvage estimates for the 2 years. What is the decision? The company should (Click to select retain defender replace defender with challenge