Question: An elevator system in an office building can either be refurbished or replaced.Refurbishing the elevators will cost $55,000 and extend the life of the elevators

An elevator system in an office building can either be refurbished or replaced.Refurbishing the elevators will cost $55,000 and extend the life of the elevators another 20 years.Salvage value at the end of 20 years will be $11,000.Annual maintenance costs will be $1,000 per year.The current salvage value of the elevators is $32,000. If interest rate is 4%, the annual equivalent cost for refurbishing the elevators is

Question 19 options:

A) $4,680

B) $7,030

C) $3,750

D) $8,240

E) $5,930

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