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ompany must decide whether to continue using its current equipment or replace it with nav, more efficient equipment. The following information is available for th
ompany must decide whether to continue using its current equipment or replace it with nav, more efficient equipment. The following information is available for th cument nd new quipme Current equipment Current salcs valuc Final sales velue Operating costs $10,000 5,500 60,500 New equipment Purchase cost $51,000 Operating costs 30,300 ntenance work wil be necessary on the new equipment n Year 4 costing S4,00 aquipment?2 the current equipment will ast or sx more ears; he life o the ne equipment is d 20 1 ears. Assuming a discount rate of ,% whet is he net p esent value o rep acing the current
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