Alexander Manufacturing is planning to purchase a machine costing $185,000 to replace old production equipment, which has a book value of $1,000. For the duration of the new machine's useful life, Alexander estimates needing to commit working capital of $6,000. Management estimates that investing in this machine will increase annual net beforetax cash flows by $70,000. The new equipment will be depreciated by the straightline method over a fouryear life with a salvage value of $25,000. Alexander expects to receive $2,200 through the sale of the old equipment, which was purchased six years ago for $137,000. Assume a 40% income tax rate and an 8% hurdle rate. When evaluating this capital investment, which of the following should not impact the decision?

Group of answer choices

The $137,000 purchase price of old equipment

The 40% effective income tax rate

The $6,000 working capital commitment

The $25,000 salvage value of the new equipment