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In planning an organization expansion, Semimmune can upgrade the existing controlled-environment rooms or purchase new ones. The presently owned ones were purchased 5 years ago

In planning an organization expansion, Semimmune can upgrade the existing controlled-environment rooms or purchase new ones. The presently owned ones were purchased 5 years ago for $200,000. They have a current "quick sale" value of $15,000, but for an investment of $90,000 now, they would be adequate for up to another 5 years. They could be sold for $30,000 at any time. Alternatively, new controlled-environment rooms could be purchased at a cost of $250,000. They are expected to have a maximum life of 8 years with a $40,000 salvage value at any time. Use a MARR of 15% per year. What are the ESL values for both options? Is it economically better to upgrade or replace

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