Question: Express, Inc., is considering replacing the equipment. The following data is available: Old Equipment Original Replacement Equipment Cost $54,000 $43,600 Disposal value now $8,400 0

Express, Inc., is considering replacing the equipment. The following data is available:

                                                 Old Equipment                   Original Replacement Equipment

Cost                                                 $54,000                                          $43,600

Disposal value now                       $8,400                                                 0

Disposal value in 5 years                    0                                                    0

Annual cash operating costs      $9,400                                              $8,400


What are the total relevant costs of maintaining the old equipment?

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