(Solved): A city water and waste-water department has a four-year-old sludge pump that was initially purchase ...

A city water and waste-water department has a four-year-old sludge pump that was initially purchased for \$65,000. This pump can be kept in service for an additional four years, or it can be sold for \$36000 and replaced by a new pump. The purchase price of the replacement pump is \( \$ 51000 \) The projected MVs and operating and maintenance costs over the four-year planning horizon are shown in the table that follows. Assuming the MARR is \( 10 \% \), calculate \( T C \) year 1 of Defender minus Minimum EUACk of Challenger \begin{tabular}{|c|c|c|c|c|} \hline Year & Defender & Challenger & \\ \hline & MV at EOY & O\&M cost & MV at EOY & O\&M cost \\ \hline 1 & 25,000 & 18,500 & 42000 & 14,000 \\ \hline 2 & 21,000 & 17,000 & 21,000 & 33000 \\ \hline 3 & 13,000 & 26,000 & 24000 & 14,500 \\ \hline 4 & & 15000 & 16,000 \\ \hline \end{tabular}