A manufacturer is considering buying a new machine that costs $10500. The machine is projected to produce an additional 53.500 in cash inows for six years. All cash ows occur at yearend. The manufacturer plans to borrow $16000 at a 15% interest rate in order to purchase the machine. Use the table below to determine breakeven time for this machine: Year Present Value of 1 at 15% 2:- '_.CCCC '_ C.8696 2 [.1561 3 [1.6575 4 CASTLS 5 C 4972 6 C 4323 {:3- A. Breakeven time is between two and three years. {:3- B. Breakeven time is between four and ve years. {:3- C. Breakeven time is between ve and six years. (7' D.Breakeven time is between three and four years. {3' E. This project will never breakeven. Rhine Farms has 1,000 cartons of eggs that were produced at a cost of $30,400. The eggs can be sold as s for $36,400. The eggs can be processed further into eggnog at an additional cost of $13,000 and be sold at a price of $53,000. The incremental income (loss) from processing the eggs into eggnog would be: O A. $40,000. O B. $(16,600). O C. $3,600. O D. $(3,600). O E. $16,600.Maple Enterprises has a milling machine with a book value of 353.000 and a remaining uselul life of ve years. At the end of the five years the milling machine will have a zerosalvage value. Maple can purchase a new milling machine for $133,000 and receive 832.300 in return for trading in its old milling machine. The old milling machine has variable manufacturing costs of 333.000 per year. The new milling machine will reduce variable manufacturing costs by 526.300 per year ever the veyear life of the new milling machine. The total increase or decrease in income by replacing the current milling machine with the new milling machine is: {:3- A. 330.300 decrease {:3- B. $31300 decrease O C. $31300 increase {:3- D. 3133.000 decrease {:3- E. 3630.300 increase