You are operating an old machine that is expected to produce a cash flow 0f $5,000...

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You are operating an old machine that is expected to produce acash flow 0f $5,000 in each of the next 3 years before it fails.You can replace it now with a new machine that costs $20,000 but ismuch ore efficient and will provide a cash flow of $10,000 a yearfor 4 years.
Calculate the equivalent annual cost of the new machine if thediscount rate is 15% (Do not round intermediate calculations. Roundyour answer to 2 decimal places.)
Should you replace your equipment now?

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You are operating an old machine that is expected to produce acash flow 0f $5,000 in each of the next 3 years before it fails.You can replace it now with a new machine that costs $20,000 but ismuch ore efficient and will provide a cash flow of $10,000 a yearfor 4 years.Calculate the equivalent annual cost of the new machine if thediscount rate is 15% (Do not round intermediate calculations. Roundyour answer to 2 decimal places.)Should you replace your equipment now?