SOLVE ALL TABLES BELOW USING ONLY EXCEL. SHOW ALL YOUR FORMULAS USED AND STEPS BELOW. MANY THANKS.

Question:

a) What is the new assets minimum cost life?

(b) When, if at all, should we replace the existing asset with the new asset?

13-38 Year, N 1 2 3 4 MC EUAC Challenger (if kept Defender N years) $2,000 $6,500 $2,200 $4,200 $2,300 $3,000 $2,550 $2,650 $2,900 $2,700 $3,400 $2,800 $4,000 $3,000 5 6 7 = Challenger's Min Cost Life = When (if at all) should replacement occur