Is it worth replacing HD?

I have a six and a half year old iMac model 2104 which has been fantastic.  After doing some research I think my hard drive is failing.
I'm hearing clicking sounds and get a folder icon with a ? in it when I boot up.  To get it to boot up sometimes takes three attempts and inserting my installation disk.
So, my question is, is it worth replacing the HD or should I just buy a new iMac?
Thanks,
Peter

Yes you could, I put a larger HD in my Early 2006 Intel iMac almost 3 years ago and it still work fine for the Grandkids to work and play games on.
see > iMac Intel - iFixit
However if you want or need to keep up to date with both Hardware and Software, then you would be better off buying a new or newer iMac. 

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