A. EUAC and AW defender

B. EUAC and AW challenger

C. Final decision

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An existing robot is used in commercial material lab. Due to service requirement and upgrade is necessary at a cost of $2,000. A new robot will be consider for possible replacement. MARR before income tax is 6%. More information below. Should the existing robot be replaced? (15 ptos) (Determine EUAC defender and EUAC challenger, and Make a decision) Defender Current market value Upgrade cost(year 0) $40,000 $ 2,000 Annual Expenses (Geometric series) $1,400 the first year, from the Second, will increase by f= 5 %/yr. 8 years Useful life(years) Market Value at the end of Year 8 (MV,) -$1,500 (Cost of disposal) An existing robot is used in commercial material lab. Due to service requirement and upgrade is necessary at a cost of $2,000. A new robot will be consider for possible replacement. MARR before income tax is 6%. More information below. Should the existing robot be replaced? (15 ptos) (Determine EUAC defender and EUAC challenger, and Make a decision) Defender Current market value Upgrade cost(year 0) $40,000 $ 2,000 Annual Expenses (Geometric series) $1,400 the first year, from the Second, will increase by f= 5 %/yr. 8 years Useful life(years) Market Value at the end of Year 8 (MV,) -$1,500 (Cost of disposal)

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