13. The cost of a certain machine was $15,000 in 1990 when the M&S Equipment Cost Index was 915.1. If the M&S index in 2005 was 1068.3 and the exponent in the cost-capacity equation had a value of 0.65, the cost of a similar machine twice as large would be closest to: (a) Less than $25,000 (b) S26,300 (c) $27,480 (d) 28,930 (e) Over $29,000 14. Leslie is performing a make/buy study involving the retention or disposal of a 4-year- old machine that was to be in production for 8 years. It cost $500,000 originally and was expected to have a salvage value of $20,000.Without a market value estimate, she decided to use the current book value plus 20% as the market value. If she applies straight line depreciation, her estimated market value is closest to () $230,000 (b) $312,000 () $260,000 (d) $240,000 (e) $320,000