Question: Please show work: A medium size consulting engineering firm is trying to decide whether it should replace its office furniture now or wait and do

Please show work:

A medium size consulting engineering firm is trying to decide whether it should replace its office furniture now or wait and do it 1 year from now. If the firm does it now, the cost will be $14,500. If it waits 1 year, the cost is expected to be $ 16,000. At an interest rate of 12% per year, should the company replace the furniture now or 1 year from now?

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