A company is considering whether to replace
one of its construction equipment.
• The existing equipment has a current cost of $15,000,
which declines by 20% each year for three years. The
operating cost for this equipment is $20,000 for year 1,
$8,000 for year 2, and $12,000 for year 3.
• The proposed equipment will cost $50,000, last five
years, and has a market value that declines by 20%
each year. The operating cost for the proposed
equipment is...