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ABC welding machine has 6 years of remaining life. If kept the machine will have depreciation expenses of $700 each year. If the current book

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ABC welding machine has 6 years of remaining life. If kept the machine will have depreciation expenses of $700 each year. If the current book value is $4.200, and it can be sold for $3,500 at this time. If the old machine is not replaced, it can be sold for $800 at the end of its useful life. ABC is considering purchasing a new machine, which costs $12.000 and has an estimated useful life of 6 years with an estimated salvage value of $2,000. This machine will be depreciated straight-line to zero book value. The new machine would raise sales by $3.000 per year, the new machine would increase operating costs by $500 per year. To support the greater sales, the new machine would require 55,000 additional investment in NWC. ABC's tax rate is 25% and its WACC is 15%. What is the amount of cash flow in year o (initial cash flow? A $13,325 B $14.525 $10.500 $15,645 E $17,000

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