X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment: Current equipment Current sales value Final sales value Operating costs $5,000 3,000 63,500 New equipment Purchase cost Final sales value Operating costs $55,000 5,500 55,000 Maintenance work will be necessary on the new equipment in Year 3, costing $2,000. The current equipment will last for 5 more years; the life of the new equipment is also 5 years. Assuming a discount rate of 7%, what is the net present value of replacing the current equipment? h the current equipment? Submit Answer Tries 0/5