Question: a) A firm is considering replacing the old machine with the new one. The following are the relevant information for its consideration (currencies are stated

a) A firm is considering replacing the old machine with the new one. The following are the relevant information for its consideration (currencies are stated in EUR): Annual revenues are EUR 200,000,000, and selling and administrative expenses are EUR 20,000,000, regardless of which elevator is used. If the old elevator is replaced now, the firm will be able to sell it for EUR 30,000,000. The old elevator is currently 1 year old. Evaluate with calculations whether the firm shall retain its old machine or replace it with a new machine! (3 points)

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