5. Your, assignment is to prepare a ATCF replacement analysis study. (20ptos) Defender The actual machine was installed 2 years ago at a cost of $80,000. The actual machine has a life of 6 years (when was installed). Now it has a market value of $60,000. If kept has an economic life of four (4) years and a salvage value of $10,000. Annual operating and maintenance cost of $12,000. For depreciation use SL-ADS 3 years property class and recovery period. Challenger A new machine is under consideration; it will cost $90,000 and have annual operating and maintenance cost of $9,000. The new machine has an economic life of 10 years and a salvage value of $20,000 Use for depreciation conventional straight-line method. For both machines uso income tax rate of 40%, and MARR of 12% a. Set up a table for the computation of ATCF for defender and using challenger PW determine whatever replacement can be made or not. Remember Challenger table is all ready done Challenger EOY[k] BTCF Depre. Tax ATCF Taxable Income 0 -90,000 -90,000 1-10 -9,000 7,000 -16,000 6400 -2,600 10 20,000 20,000 -8,000 12,000 PW(12%)- -$100,827