689 X Pow X 888 X $ Pon X 3 Pow. x Pos X offix Off * Llearn.xythos.prod/5a3199fc4282a/15348414?response-cache-control=private%2C%20max-age%3E Q3. Investment Contrast Dragon Inc. a NJ based construction firm is evaluating whether to replace an aging machine with a new model. For the old machine, next year maintenance will cost $1,500, and those costs will double each year. The old machine could be sold today for $4,000 but resale value will decline 50% per year. A new machine model costs $12,000, lasts for 5 years and costs $900/year to maintain. After 5 years the new model could be sold for $1,500. Revenue from Machine is about $8000 annually. If r = 12% and we ignore taxes; should Dragon Inc. replace the old machine? If so, when should it do it? 689 X Pow X 888 X $ Pon X 3 Pow. x Pos X offix Off * Llearn.xythos.prod/5a3199fc4282a/15348414?response-cache-control=private%2C%20max-age%3E Q3. Investment Contrast Dragon Inc. a NJ based construction firm is evaluating whether to replace an aging machine with a new model. For the old machine, next year maintenance will cost $1,500, and those costs will double each year. The old machine could be sold today for $4,000 but resale value will decline 50% per year. A new machine model costs $12,000, lasts for 5 years and costs $900/year to maintain. After 5 years the new model could be sold for $1,500. Revenue from Machine is about $8000 annually. If r = 12% and we ignore taxes; should Dragon Inc. replace the old machine? If so, when should it do it