An engineer with Calahan Technologies calculated the AW of cost values shown for a presently owned machine, using estimates she obtained from the vendor and company records.
 FIGURE 1.png)
(a) Purchase the challenger at the end of year 2, when its AW will be lower than that of
the defender.
(b) Since the challenger has the same AW now as that of the defender for the next two
years of retention, purchase the challenger now.
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