A replacement compressor for a manufacturing operation is needed for the next 15 years. A new compressor costs $8000, comes with an annual service of charge of $750, and would have a salvage value of $1000 at the end of 15 years. An equivalent salvaged compressor is available for $1000 but requires $1000 of repair work and would only have a useful life of 5 years. It would also require annual maintenance at the end of years 1, 2, 3, and 4 estimated to be $500, $750, $1000, and $1250 respectively. At that time the salvage compressor would be replaced with a new compressor which would have a salvage value of $2000 after 10 years of use. Would you recommend a new or salvaged compressor today and what would the savings or loss be in todays dollars if the annual interest rate is 6%?