Economic analysis: replace machine now or later

[gfd43tg]

Thanks, that is much more clearer now. Now I need to figure out how to actually calculate an infinite series

 

[Chestermiller]

Thanks, that is much more clearer now. Now I need to figure out how to actually calculate an infinite series

a/(1-r)

 

[gfd43tg]

I found scenario 1 NPV to be -$21,953.7, and for scenario 2 it is -$24,804, so it is better to keep using the machine until it has finished its operating life.