1. X Company is considring replacing one of its machines in order to save oprating costs. Operating costs with the current machine are $68,000 per year; oprating costs with the new machine are expcted to be $32,000 per year. The new machine will cost $55,000 and will last for four yars, at which time it can be sold for $2,000. The currnt machine will also last for four more years but will not be worth anything at that time. It cost $34,000 three yars ago but is currently worth only $6,000.

Assuming a discount rate of 8%, what is the incrmental net present value of buying the new machine instead of keeping the current machine?

A: $11,186

B: $16,220

C: $23,519

D: $34,103

E: $49,450

F: $71,702

2. X Company has an opportunity to accpt a special order that will result in an immdiate profit of $76,000. The marketing manager warns that if X Company accpts the order, there will be an adverse raction from regular customers, and X Company's regular profits will fall by an stimated $9,000 in each of the next five years.

Assuming a discount rate of 8%, what is the nt present value of accepting the special order?

A: $17,029

B: $22,649

C: $30,123

D: $40,063

E: $53,284

F: $70,867