The replacement of a planning machine is being considered by the Reardorn Furniture Company. (There is an indefinite future need for this type of machine.) The best challenger will cost $30,000 for installation and will have an estimated economic life of 14 years and a $2,000 MV at that time. It is estimated that annual expenses will average $11,000 per year. The defender has a present BV of $6,500 and a present MV of $5000. Data for the defender for the next three years are given below. Using a before-tax interest rate of 18% per year, make a comparison to determine whether it is economical to make the replacement now.

Year	MV at EOY	BV at EOY	Expenses during year
1	0	$4,875	$18,000
2	-750	3,250	23,000
3	-1,500	1,625	28,000

A. Fill in the table for the EUAC values for the defender for years 1-3.

Year	Equivelant Uniform Annual Cost(EUAC)

B. The Equivelant Uniform Annual Cost (EUAC) for the challenger over its useful life is?

C. The replacement should be made at EOY 1, EOY 2, EOY 3, or immediately?