ABC Company is considering the purchase of a new machine to replace its old machine. The salvage value of the old machine was assumed to be zero. ABC Company computed the project's NPV based on that assumption.

If instead, the old machine could be sold for $20,000, what would be the impact on the net present value of the proposal to purchase the new machine as first computed above by ABC Company?

a.	It would increase the net present value of the proposal to purchase the new machine.
b.	It would decrease the net present value of the proposal to purchase the new machine.
c.	It would not affect the net present value of the proposal to purchase the new machine.
d.	Potentially, it could increase or decrease the net present value of the new machine.