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 66,000 New equipment Purchase cost Final sales value Operating cost savings $51,000 6,500 9,000 Maintenance work will be necessary on the new equipment in Year 4, costing $4,000. The current equipment will last for 6 more years; the life of the new equipment is also 6 years. Assuming a discount rate of 5%, what is the net present value of replacing the current equipment? Submit Answer Tries 0/5