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 4,000 67,500 New equipment Purchase cost Final sales value Operating cost savings $50,000 5,000 9,500 Maintenance work will be necessary on the current 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 8%, what is the net present value of reo acing the current equipment? Submit Answer Tries 0/5