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Leopal Company is considering replacing a freight elevator. The current freight elevator has a book value of $37,500 and a remaining useful life of four

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Leopal Company is considering replacing a freight elevator. The current freight elevator has a book value of $37,500 and a remaining useful life of four years, at which time its salvage value will be zero. The current market value of the freight elevator is $5,000. Variable operating costs per year are $201,600 per year. Leopal has identified the following two possible replacement options. Prepare an analysis of the alternatives and recommend which option should be used to replace the current elevator

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