Given the Marginal Cost Data in the Table Below for a Defender

True/False

Given the marginal cost data in the table below for a defender, it is economical to replace the defender in year 1 if EUAC of challenger is $12,500.
$$\begin{array} { | c | c | } \hline \text { Year } & \text { Margiral cost of defender } \\\hline 1 & \$ 13,000 \\\hline 2 & \$ 12,000 \\\hline 3 & \$ 11,000 \\\hline 4 & \$ 16,000 \\\hline 5 & \$ 15,000 \\\hline\end{array}$$