The company's pump has broken down and you have either an option to repair the...
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The company's pump has broken down and you have either an option to repair the current hydraulic pump press or trade in the old pump and purchase a brand new pump:
Option Repair. The current pump would cost to repair and press costs $ to operate each month and can operate for another years. It can be sold at $ today or can be sold for $ in years time
purchase New: Sell the old hydraulic pump above and purchase a new press for $ which costs $ to operate each month for the next years and can be sold for $ at the end of years.
Which option would you pick? Assume an annual interest rate of
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