Replacing Old Equipment at an Immediate Cost of $5000 and $7000

question 57

Essay

Replacing old equipment at an immediate cost of $5000 and $7000 six years from now will result in a savings of $3000 semi-annually for ten years. At 11% compounded annually, should the old equipment be replaced?

---

Definitions:

Computer Programmer

A professional who writes and tests code that allows computer applications and software programs to function.

Editor

A person who is in charge of and determines the final content of a text, publication, or broadcast.

Cashier

An employee responsible for handling financial transactions, typically in a retail setting.

Paperboy

Traditionally, a person, often a child or teenager, who delivers newspapers to subscribers' homes.