A consulting aerospace engineer at Aerospatial estimated AW values for a presently owned, highly accurate steel rivet inserter based on company records of similar equipment.

If Retained This	AW Value,
Number of Years	$/Year
1	62,000
2	50,000
3	47,000
4	53,000
5	70,000

A challenger has ESL = 2 years and AW_C = $-49,000 per year. If the consultant must recommend a replace/retain decision today, should the company purchase the challenger? The MARR is 15% per year.

	Recommendation now is to replace for the challenger.
	Recommendation now is to retain the defender for 3 years, then replace.
	Recommendation now is to retain the defender for 2 years, then replace.
	Recommendation now is to retain the defender for 5 years, then replace.