The owner of a bowling alley, an engineer by training purchases a MARGARITA MACHINE for $7,500. For depreciation purposes, the machine has a 5-year recovery period. After two years of usage, it appears to be less attractive than the MASTER BLENDER, capable of a wider variety of frozen concoctions. The details of the current asset for the remainder of its life are shown below with those of the possible replacement challenger. The defender market value will be $1,000 at the end of the third additional year. How many more years should the asset be retained? Interest is 100 per year. Ignore inflation and taxes. Income generated by either machine is assumed to be identical. NEXT THREE YEARS FOR MARGARITA MACHINE VALUE AT ANNUAL ADDITIONAL BEGINNING OPERATINGS YEARS OF YEAR COST 1 $4,500 $3,000 2 3 ,000 3,500 3 1 ,500 4.000 MULTI-CONCOCTION MASTER BLENDER FIRST COST $10,000 OPERATING COST 3,000/yr LIFE 7 YEARS SALVAGE VALUE 1,000 How many more years should the asset be retained using a One additional year analysis? What would be the true ESL of the defender using the minimum-cost 11te technique? Asuming & planning horizon of three years (making the defender and challenger equal-life alternatives) demonstrate the opportunity coat method and b.) the cash flow method of replacement analysis