Problem:
A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day,
Required:
What is the expected annual savings of upgrading the equipment over its remaining life of 7 years? What other factors do you need to take into consideration to justify the decision to upgrade the equipment? Assume a 5 day work week. Please provide step by step solution and also justify your answer and calculations.