22 The Mountain Jam Company purchased a machine 5 years ago for $70,000. It had an estimated life of 7 years from the time of purchase and is expected to have zero salvage value at the end of the 7th year. The old machine can be sold today for $20,000. A new machine can be purchased for $69,300. It has a 2-year life and is expected to reduce operating expenses by $50,000 per year. Both machines are in Class 43 with a depreciation rate of 30%. After 2 years, the new machine can be sold for $20,000. The company's cost of capital is 9% and the tax rate is 40%. What are the incremental terminal year cash flows? (Not including the operating cash flows.) A) 20,000 B) *22,872 C) 24,860 D) 27,872 29,334