Question: Can someone please solve problem 2? Thanks! Problem 2 (25 points) (Replacement) Suppose you have Machine A that you are considering replacing with Machine B.

Can someone please solve problem 2? Thanks!
Problem 2 (25 points) (Replacement) Suppose you have Machine A that you are considering replacing with Machine B. Machine A-was bought two year found to be worth about $18,000. It has a remaining life of three years with an increasing maintenance and operation (M&O) cost every year, and its marginal cots are not increasing. The economic service life (ESL) analysis for Machine A over its remaining life is given in the following table. In this table, AW is the annual cost if Machine A is replaced after k years. $25,000. It was appraised recently, and it was Ycar, kAW 15,204 14556 13,821 Machine B can be bought for $30,000, and the seller is willing to buy your current machine (Machine A) for a trade-in-value of $20,500. With the rapidly growing market in technology, Machine B is expecte todropin value by 40% each year. It has an expected ife of five years, and a maintenance and operation (M&O) cost of $1000 in the first six months, which is expected to increase by $600 every six months. The in eres rate 8% per year compounded monthly. a. Find the ESL for Machine B? (Take into account the trade-in-value of Machine A.) b. Should Machine A be replaced by Machine B now? If not now, when
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