SMS Microsystems is considering the replacement of a confocal microscope (CFM) in the quality control department. The closest CFM will require at least $19,500 for installation and will have an estimated economic life of 10 years; its end-oflife value is estimated to be roughly $3,000 MV. Annual operational and maintenance expenses are estimated to average about $14,000 per year. Due to the dynamic nature of microsystems technology, the existing system (defender) has a book value of $7,000 but a present market value of only $4,000. It is estimated that over the next three years the system will have the MV, BV, and expense data shown in the table below. Using a before-tax interest rate of 17% per year, make a comparison to determine whether it is economical to make the replacement now. SMS Microsystems is considering the replacement of a confocal microscope (CFM) in the quality control department. The closest CFM will require at least $19,500 for installation and will have an estimated economic life of 10 years; its end-oflife value is estimated to be roughly $3,000 MV. Annual operational and maintenance expenses are estimated to average about $14,000 per year. Due to the dynamic nature of microsystems technology, the existing system (defender) has a book value of $7,000 but a present market value of only $4,000. It is estimated that over the next three years the system will have the MV, BV, and expense data shown in the table below. Using a before-tax interest rate of 17% per year, make a comparison to determine whether it is economical to make the replacement now