Question 1 The information required to make the replacement decision about an equipment is given as follows: Year Salvage value Maintenance costs EAC Capital costs Total $32,000 15,031 7,065 3,320 1,561 WN $4,000 8,000 16,000 32,000 64,000 EAC maintenance costs $4,000 5,923 9,027 14,125 22,627 $38,416 30,889 24,226 19,813 16,746 $42,416 36,812 33,253 33,938 39,373 If the minimum acceptable rate of return is 8.0%, what is the purchase price of this equipment? $70,416 $6,416 $65,200 $69,045 $69,416