3. You are analyzing a project using an after-tax replacement analysis of the installed system (defender) and a challenger as detailed below (all values are in $1000 units). The effective state tax rate of 6% is applicable. Assume salvages in the future occur at the estimated amounts and use classical SL depreciation. Note: if life is more than years in service, adopt the years of service) (a) Use AW analyses to decide which alternative is better if an after-tax return of 6% per year is required. (Ans. AWD $-4178, AWc S-3432) Would the decision be different if a before-tax replacement analysis were performed at i-12% per year? (Ans. AWD S-5046, AWc $-4276) Defender Challenger First cost, $ AOC, $/year Salvage estimate, S Market value, $ Life, years Years in service 15,000 1,500 3,000 -28.000 1,200 2,000 15,000 10