Please refer to the question attached.

1. (20 marks) CNC mill was purchased 4 years ago for $60,000. Even though it is still a productive machine, a better machine is now on the market that can be bought for $80,000. The new machine will increase the benet by reducing the annual operating costs. Operating cost and book values are shown below for both machines. (MARR=15%) a. Obtain the EAC of capital cost and EAC of operating cost for both defender and challenger over the years and draw the curves in Excel including the EAC of total costs. b. Obtain the economic life associated with the minimum EAC of total costs for both defender and challenger c. Is it worth replacing the machine if the machine is required only for the next 4 years