A new laptop has just come onto the market that you estimate will have an equivalent annual cost of $500. You could sell your current laptop right away for $1 000, or you could spend $500 on an upgrade. At the end of this year, after the upgrade, it will have a resale value of $800, going down by $200 a year. Once its salvage value reaches zero, its physical life is over. If both laptops provide equivalent functionality, when should you replace your current laptop? Your MARR is 5%.
A)Replace it now.
B)Replace it in 2 years.
C)Replace it in 3 years.
D)Replace it in 4 years.
E)Replace it in 5 years.

Question

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The Answer of A new laptop has just come onto the market that you estimate will have an equivalent annual cost of $500. You could sell your current laptop right away for $1 000, or you could spend $500 on an upgrade. At the end of this year, after the upgrade, it will have a resale value of $800, going down by $200 a year. Once its salvage value reaches zero, its physical life is over. If both laptops provide equivalent functionality, when should you replace your current laptop? Your MARR is 5%.
A)Replace it now.
B)Replace it in 2 years.
C)Replace it in 3 years.
D)Replace it in 4 years.
E)Replace it in 5 years.

A New Laptop Has Just Come onto the Market That