Question: ( Time allowance: 5 minutes ) This is a replace now or later problem; however, the question asked is only about one part of the

(Time allowance: 5 minutes) This is a replace now or later problem; however, the question asked is only about one part of the analysis. Do not solve the entire problem, only the part asked below.
You are facing a decision of whether to replace an old equipment at your factory. If the new equipment is purchased, the old equipment can be sold today for $19. However, if the old equipment is not replaced today, it will continue to be depreciated down to zero using straight-line method over its remaining 4 years. The remaining book value today of the old equipment is $6. It is estimated that the old equipment can be sold for $4 in one year (at the end year 1). The pre-tax maintenance cost (expenses) per year for the old equipment will be $7. Assume that the discount rate is 10% and the tax rate is 30%.
For your answer, round to nearest dollar, DO NOT USE commas to separate thousands, and do not use the dollar ($) sign; do not enter decimals. For example if your answer is -$12.534 then enter -13; if answer is $23.7459 then enter 24 ; if the answer is -$40 then enter -40
The opportunity cost today
 (Time allowance: 5 minutes) This is a replace now or later

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