The company's pump has broken down and you have either an option to repair the current hydraulic pump press or trade in the old pump and purchase a brand new pump:

Option $1-$Repair. The current pump would cost $50,000$ to repair and press costs $$2\mathrm{.}500$ to operate each month and can operate for another $12$ years. It can be sold at $$35,000$ today or can be sold for $$10,000$ in $12$ years time

$2-$ purchase New: Sell the old hydraulic pump above and purchase a new press for $$175,000,$ which costs $$1,200$ to operate each month for the next $12$ years and can be sold for $$15\mathrm{.}000$ at the end of $12$ years.

Which option would you pick? Assume an annual interest rate of $6\mathrm{.}5\%.$