Your firm spends $$509,000$ per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses for the next $3$ years. If it does so$,$ it expects it will need to spend $$1\mathrm{.}9$ million in year $4$ replacing failed equipment. For what costs of capital $(COC)$ is forgoing maintenance a good decision?

When cost of capital

When cost of capital

When cost of capital $>8\%$

When cost of capital $>11\%$