46. Helmsdale Improvements Ltd. is evaluating the replacement of an older machine. There are two possible replacements under considerationthe OuOu and the Major OuOu. The existing machine was purchased a few years ago for $32,000 and currently has a book value of $8,500. If sold today, it would probably be worth $4,500. The OuOu machine has a price tag of $50,000 and expected annual operating costs of $19,500. It could do the required job for seven years, at which time it could be sold for a projected $6,000. The Major OuOu machine is a little pricier at $69,000, but its expected annual operating costs are only $13,000. After seven years it could be sold for approximately $8,000. The existing machine is currently a Class 10 asset for CCA purposes, with a 30 percent rate. Either of the new machines would join the same asset pool. Improvements Ltd. has a tax rate of 25 percent and its cost of capital is 14 percent. Which new machine would you recommend Helmsdale Improvements Ltd. purchase? 46. Helmsdale Improvements Ltd. is evaluating the replacement of an older machine. There are two possible replacements under considerationthe OuOu and the Major OuOu. The existing machine was purchased a few years ago for $32,000 and currently has a book value of $8,500. If sold today, it would probably be worth $4,500. The OuOu machine has a price tag of $50,000 and expected annual operating costs of $19,500. It could do the required job for seven years, at which time it could be sold for a projected $6,000. The Major OuOu machine is a little pricier at $69,000, but its expected annual operating costs are only $13,000. After seven years it could be sold for approximately $8,000. The existing machine is currently a Class 10 asset for CCA purposes, with a 30 percent rate. Either of the new machines would join the same asset pool. Improvements Ltd. has a tax rate of 25 percent and its cost of capital is 14 percent. Which new machine would you recommend Helmsdale Improvements Ltd. purchase