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