According to replacement analysis, determine the number of years that the defender should be used before replacement. Defender Challenger Year, TC EUAC TC EUAC k 1. 8,000 8,000 9,000 9,000 2. 6,000 7,047 5,500 7,333 Scenario 3. 7,500 7,184 6,500 7,081 4. 8,000 7,360 8,000 7,279 12,000 8,120 11,000 7,888 Your answer: O Use defender: 3 years than replace with the challenger O Use defender: 0 year than replace with the challenger OUse defender: 1 year than replace with the challenger Use defender: 2 years than replace with the challenger Use defender: 5 years than replace with the challenger O Use defender: 4 years than replace with the challenger

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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According to replacement analysis, determine the number of years that the defender should be used before replacement.
Defender
Challenger
Year,
TC
EUAC
TC
EUAC
k
8,000
8,000
9,000
9,000
2
6,000
7,047
5,500
7,333
Scenario
3
7,500
7,184
6,500
7,081
4
4
8,000
7,360
8,000
7,279
12,000
8,120
11,000
7,888
Your answer:
Use defender: 3 years than replace with the challenger
O Use defender: 0 year than replace with the challenger
O Use defender: 1 year than replace with the challenger
O Use defender: 2 years than replace with the challenger
O Use defender: 5 years than replace with the challenger
Use defender: 4 years than replace with the challenger
Transcribed Image Text:According to replacement analysis, determine the number of years that the defender should be used before replacement. Defender Challenger Year, TC EUAC TC EUAC k 8,000 8,000 9,000 9,000 2 6,000 7,047 5,500 7,333 Scenario 3 7,500 7,184 6,500 7,081 4 4 8,000 7,360 8,000 7,279 12,000 8,120 11,000 7,888 Your answer: Use defender: 3 years than replace with the challenger O Use defender: 0 year than replace with the challenger O Use defender: 1 year than replace with the challenger O Use defender: 2 years than replace with the challenger O Use defender: 5 years than replace with the challenger Use defender: 4 years than replace with the challenger
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