problems 27 through 29 are based on the following statement: a small manufacturing company expects to have to replace its aging production line in five years with new equipment. the current equipment has operating costs which are expected to be $5,000 this year, $6,000 next year, with costs increasing by $1,000 per year through year five. the equipment will have a salvage value of $30,000 at the end of year five. the new equipment is expected to cost $150,000 and the company uses an interest rate of 16% per year compounded quarterly on its investments.