The EUAC of the Challenger for an Economic Life of 5

Multiple Choice

The EUAC of the challenger for an economic life of 5 years is $8,500. The marginal cost of the defender is provided in the table below. Determine when the defender should be replaced.
$$\begin{array} { | l | l | l | l | l | l | } \hline \text { Year } & 1 & 2 & 3 & 4 & 5 \\\hline \begin{array} { l } \text { Margiral } \\\text { Cost, } 5\end{array} & 7,500 & 8,000 & 8,500 & 9,000 & 9,500 \\\hline\end{array}$$

A) At the end of year 2
B) At the end of year 1
C) At the end of year 3
D) Never