The estimated future market values and M&O costs for an in-place backup generator at MediCare Hospital and a possible replacement are shown below. Mrs. Jamison, hospital director, told you that she is interested only in what happens over the next 4 years. If the current generator is to be replaced, it must be done now or within the next 4 years. Using an interest rate of 10% per year and a 4-year study period, determine the AW for the best defender-challenger combination over the whole period.

	In-Place		Replacement
Year	Market Value, $	M&O Cost, $	Market Value, $	M&O Cost, $
0	485,000		679,000
1	388,000	388,000	582,000	388,000
2	291,000	388,000	485,000	388,000
3	194,000	388,000	388,000	388,000
4			194,000	388,000
5			97,000	388,000