AKO Tire Company is evaluating whether it should retain the current melting process that uses a conventional method or replace it with a high-tech method. The relevant information for each method is shown. Use an interest rate of 12% per year. Which one of the following value is closest to the replacement value?

Conventional High-Tech -445,000 -750,000 Original cost 6 years ago, ($) Investment cost now, ($) Current market value, ($) Annual operating cost, ($ Salvage value, ($) Remaining life, (years) - 40,000 -210,000 -70,000 70,000 0 6 14