Solve clearly

Question 6 14 pts Assume that you are trying to replace an old machine that was purchased 10 years ago at a cost of $25,000. It has a current market value of $4,000. You can overhaul the machine for $1 ,000. This would extend the life of the machine for another 3 years the following 084\" costs End of Market 08M Year Value Cost 1 $3,000 $3,500 2 $2,250 $4,500 3 $1 ,603 $5,500 Altematively, you can buy a new machine for $12,000 with an economic life of 5 years- The annual equivalent cost is $5900 {assume that this is already precalculated for you}. The nn's MARE is 12% 1. What is the remaining economic service life 2. What is your decision? Keep the old one or buy the new one