You want to buy a new equipment to replace an existing one. The new equipment will be depreciated down to zero

using straight$-$line depreciation over its $10-$year life. The project is a $10-$year project. The market value of the new

equipment at the end of year $10$ is expected to be $0.$ The new equipment will replace an existing old equipment that

has $10$ years left of depreciation at a $$3,000$ a year. The estimated before tax proceeds from selling this existing

equipment is $$15,000$ today. The market value in $10$ years for this old equipment would be $0.$ The new equipment

will generate annual cost savings of $$12,000$ before taxes. The tax rate is $20\%$ and the discounting rate is $10\%.$

What is the maximum price you are willing to pay today for the new equipment?

For your answer, do not enter the dollar sign $($$$),$ DO NOT use commas, and you can round to zqro decimals $($the

nearest dollar$).$

Your Answer: