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Sarah has a snow removal business, and her snowplough that she purchased last year for $ 3 , 0 0 0 has broken down. Sarah

Sarah has a snow removal business, and her snowplough that she purchased last year for $3,000 has broken down. Sarah can either repair the snowplough for $3,500 or purchase a new snowplough for $6,000. The new snowplough will decrease the annual operating costs by $200 per year, has a useful life of 5 years and a salvage value of 0. Once repaired the old snowplough will last for another 5 years. If the old snowplough is not repaired, it can be sold for $1,000. The new snowplough is manufactured by a Company that recently announced it has reduced its climate footprint by 10% over the last 2 years. Should Sarah repair the snowplough or purchase the new snowplough? Why?

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