A company is looking to replace some furniture that is used for social events. Determine whether we should retain or replace the furniture, given the information below:

The furniture has been used for many events accumulated wear and tear. Last year, the company spent $1,000 to fix some of the furniture. Another team in the company deduced that another $1,500 would be needed for additional repair.

Another option for the company is to replace the furniture. The local furniture store offers new furniture for $7,000. Both the old and new furniture should be usable for 8 years. The new furniture would also be more efficient and reduce the company operating costs by $500 each year. Also, this new furniture is top class quality and therefore can be rented out by other companies if promoted online.