a. 3. Consider the following information for a machine. Assume the balance-declining depreciation method for calculating the salvage value at each year and MARR=12%. Obtain the EAC of capital, M&O cost, and the total cost of both defender and challenger over the years 1 to 5 and draw the curves in Excel. b. How we can analyze if the defender should be replaced by the challenger now and obtain the replacement decision. Defender Initial period (years) Salvage Value M&O ($) cost 0 36,000 Challenger Salvage Initial M&O Value Cost ($) ($) 140,000 34,000 38,000 42,000 46,000 50,000 15,000 1 2 3 80,000 95,000 110,000 125,000 140,000 4 5 4,000 a. 3. Consider the following information for a machine. Assume the balance-declining depreciation method for calculating the salvage value at each year and MARR=12%. Obtain the EAC of capital, M&O cost, and the total cost of both defender and challenger over the years 1 to 5 and draw the curves in Excel. b. How we can analyze if the defender should be replaced by the challenger now and obtain the replacement decision. Defender Initial period (years) Salvage Value M&O ($) cost 0 36,000 Challenger Salvage Initial M&O Value Cost ($) ($) 140,000 34,000 38,000 42,000 46,000 50,000 15,000 1 2 3 80,000 95,000 110,000 125,000 140,000 4 5 4,000