Problem 1. Cost data of a machine is shown in the following table. Using an annual rate of 10%, find the AW amount at ESL year. Retention Market Yr. Value M&O/Yr. 0 70,000 1 40,000 35,000 2 32,000 47,500 3 3 13,000 50,000 4 2,000 53,500 Problem 2. Problem 2. Based on your result from Problem 1 above to conduct a Retention and Replacement study with a specific period of 4 years. Assuming there is a suitable Challenger which will have a constant AW of -67,000 per year. Calculate the 4-year AW of different scenarios and choose the best scenario (lowest 4-year AW). Show the AW amount of the scenario you select and state the year when you replace the Defender during the 4-year period. (For example, if you keep the Defender for 1 year, you will replace it in Year 2 and your answer should be "Year 2). Both AW amount and year need to be correct to get full credit; no partial credit