Replacing old office equipment at an immediate cost of $3000 and $4000 four years from now will result in savings of $400 semi-annually for ten years. Should the old equipment be replaced
a) at 8% compounded annually?
b) at 12% compounded annually?

Question

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The Answer of Replacing old office equipment at an immediate cost of $3000 and $4000 four years from now will result in savings of $400 semi-annually for ten years. Should the old equipment be replaced
a) at 8% compounded annually?
b) at 12% compounded annually?

Replacing Old Office Equipment at an Immediate Cost of $3000