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Any drain in your house requires a water trap to prevent sewer gases from entering the home. Dishwashers don’t have an internal water trap, so they must use an external P trap. The most convenient P trap for the dishwasher is already in the plumbing under your sink.

Costs depend on labor rates, replacement part prices, brand, and whether emergency service is required.

Yes, a dishwasher needs an air gap to prevent backflow. Additionally, in many locations, air gaps or another measure to prevent backflow are required for building code compliance. There are alternatives to an air gap, like a Studor vent or a loop and trap design, but an air gap is the simplest and most popular solution.  

It’s not worth fixing a 20-year-old dishwasher or any 20-year-old appliance. Twenty years is beyond the useful life span of nearly every major household appliance. Once the appliance nears the end of its useful life span, repairs will become more frequent. A replacement often becomes more cost-effective at that point.