7.32 Station WJXT is considering the replacement of its old, fully depreciated sound mixer.

Two new models are available. Mixer X has a cost of $400,000, a five-year expected life, and after-tax cash flow savings of $120,000 per year. Mixer Y has a cost of $600,000, an eight-year life, and after-tax cash flow savings of $130,000 per year. No new technological developments are expected. The cost of capital is 11 percent. Should WJXT replace the old mixer with X or Y?