A business will analyze which year it should replace machine X. The cost of the new machine is $600,000, the salvage value is $60,000 and its life is 12 years. The firm's expected cost of capital is 15%. The information with the old X machine is given below. The machine is currently available for sale for $80,000. What year should firm X replace machine? for X machina Years: operating costs: Salvage Value: 1 400.000 60.000 2. 500.000 50.000 3 600.000 40.000