### Determine the Best Time to Change the Defender with the Challenger**Defender vs. Challenger Cost Analysis:**| Year | Defender (Cost) | Challenger (Cost) ||------|------------------|-------------------|| TC1 | 7500 EUAC1 | 9000 EUAC1 || | 7500 | 9000 || TC2 | 8000 EUAC2 | 8000 EUAC2 || | 7738.095 | 8523.81 || TC3 | 8200 EUAC3 | 7000 EUAC3 || | 7877.644 | 8063.444 || TC4 | 10500 EUAC4 | 8000 EUAC4 || | 8651.261 | 8258.349 |**Note:**- TC stands for Total Cost over years.- EUAC stands for Equivalent Uniform Annual Cost.**Select one:**- ( ) a. At the end of year 2.- ( ) b. At the end of year 1.- ( ) c. At the end of year 3.- ( ) d. At the end of year 4.- ( ) e. Now.

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Determine the best time to change the defender with the challenger

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Determine the Best Time to Change the Defender with the Challenger

**Defender vs. Challenger Cost Analysis:**

| Year | Defender (Cost) | Challenger (Cost) |
|------|------------------|-------------------|
| TC1 | 7500 EUAC1 | 9000 EUAC1 |
| | 7500 | 9000 |
| TC2 | 8000 EUAC2 | 8000 EUAC2 |
| | 7738.095 | 8523.81 |
| TC3 | 8200 EUAC3 | 7000 EUAC3 |
| | 7877.644 | 8063.444 |
| TC4 | 10500 EUAC4 | 8000 EUAC4 |
| | 8651.261 | 8258.349 |

**Note:**
- TC stands for Total Cost over years.
- EUAC stands for Equivalent Uniform Annual Cost.

**Select one:**
- ( ) a. At the end of year 2.
- ( ) b. At the end of year 1.
- ( ) c. At the end of year 3.
- ( ) d. At the end of year 4.
- ( ) e. Now.

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