Hand written solution using interest factors is what is required - DO NOT USE EXCEL

Return to question 3 Required information State-of-the-art digital imaging equipment purchased 2 years ago for $50,000 had an expected useful life of 5 years and a $5000 salvage value. After its poor installation performance, it was upgraded for $20,000 1 year ago. Increased demand now requires another upgrade for an additional $24,000 so that it can be used for three more years. Its new annual operating cost will be $25,000 with a $12,000 salvage after the 3 years. Alternatively, it can be replaced with new equipment costing $62,500, an estimated AOC of 14,000, and an expected salvage of $23,500 after 3 years. If replaced now, the existing equipment can be traded for only $8,500. Use a MARR of 13% per year. 16.66 points Calculate the AWs and determine whether the company should retain or replace the defender now The company should replace defender with challenger