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In replacement analysis the defender is the

  • A.asset currently in service
  • B.proposed new asset
  • C.asset with the lower annual cost
  • D.asset with the longer remaining life

Answer: A

Correct answer: asset currently in service

The defender is the incumbent, and the challenger is the proposed replacement. The terms matter because the two are not treated alike: the defender’s investment is its current market value, not its original cost, while the challenger’s is what must actually be paid for it.

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