Asir.year-old computer numerical control (CNC) machine originally cost $9.000 and its current market value is 51,500. If the machine is kept in service for the next five years after which it will have reached the end of its physical life), its operating costs and salvage estimates are given below. Total Operating Costs Year Operation and Repairs Delays Due to Breakdown Salvage Valio $1.300 S600 $1.200 2 1.500 SDO 1.000 1.700 1.000 300 4 1.900 1.200 0 2.000 1.400 0 It is suggested that the machine he replaced by a new CNC machine of improved design at a cost of 55.000. It is believed that this purchme will completely eliminate break down and the resulting cost of delays and that operation and repait costs will be rared 5200 a year from what they would be with the old machine. Assume a maximum life of years for the challenger and a salvage value in year one of 70% of the initial cost and dropping by 30% per year theater. The firm's required rate of return is 129 What is the economie wnice life of the defender marks) What is the economkewe life of the challenger? marks) Should we replace the defender today? Why why we mark) we don't replace the defender today when should we replace it? Show your work Asir.year-old computer numerical control (CNC) machine originally cost $9.000 and its current market value is 51,500. If the machine is kept in service for the next five years after which it will have reached the end of its physical life), its operating costs and salvage estimates are given below. Total Operating Costs Year Operation and Repairs Delays Due to Breakdown Salvage Valio $1.300 S600 $1.200 2 1.500 SDO 1.000 1.700 1.000 300 4 1.900 1.200 0 2.000 1.400 0 It is suggested that the machine he replaced by a new CNC machine of improved design at a cost of 55.000. It is believed that this purchme will completely eliminate break down and the resulting cost of delays and that operation and repait costs will be rared 5200 a year from what they would be with the old machine. Assume a maximum life of years for the challenger and a salvage value in year one of 70% of the initial cost and dropping by 30% per year theater. The firm's required rate of return is 129 What is the economie wnice life of the defender marks) What is the economkewe life of the challenger? marks) Should we replace the defender today? Why why we mark) we don't replace the defender today when should we replace it? Show your work