(A) a company want to purchase a new equipment, price= $10,000,000 . it will save $2,000,000 annually compared to the present equipment. its' economic life is 12 years. the company requires a return at least 20% . taxes are disregarded
(B) the company bought the equipment but 2 years later a better machine is on the market. cost $20,000,000 over the cost of operating the (A) equipment. the economic life of (B) is 10 years. taxes are disregarded.
WHAT ACTION SHOULD THE COMPANY TAKE?