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An elevator system in an office building can either be refurbished or replaced. Refurbishing the elevators will cost $55,000 and extend the life of the
An elevator system in an office building can either be refurbished or replaced. Refurbishing the elevators will cost $55,000 and extend the life of the elevators another 20 years. Salvage valve at the end of 220 years will be $11,000. Annual maintenance costs will be $1,000 per year. The current Salvage valve of the elevators is $32,000. Replacing the elevator system will cost $140,000, with an expected life of 50 years. Maintenance cost will be $400 per year. Salvage valve at the end of 50 years will be $28,000. Interest is 4%. The annual Coat for refurbishing the elevators is: $4, 680 $5, 930 $7, 030 $8, 240 The annual Coat for replacing the elevators is: $5, 840 $6, 340 $6540 $6, 740
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