X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment Current equipment Current sales value Final sales value Operating costs $5,000 6,000 62,500 New equipment Purchase cost Final sales value Operating cost savings $50,000 6,000 8,500 Maintenance work will be necessary on the new equipment in Year 3, costing $2,000. The current equipment will last for five more years; the life of the new equipment is also five years. Assuming a discount rate of 7%, what is the net present value of replacing the current equipment? Submit Answer Tries 0/3