As one of the managers for Confederate Mills, Inc.. you are analyzing the replacement of a dyeing vat to convert blue cloth to gray. The old vat was purchased five years ago for $100,000 and is being depreciated to a zero salvage value using the straight-line method over a 20-year life, The market value of the vat is $40,000. The new vat has a price of $80,000 and will be depreciated to a $5.000 salvage value (also market value 15 years hence) using the straight-line method over a 15 vear life The new vat will increase revenues by $2.000 per ver. and operating costs will decrease by $666.67 per year. A CM has a 12% cost of capital, a marginal ordinary tax rate of 40%. The vat will require additional working capital of $10,000 right now (t=0). What is the year O net each flow? -$50:000. -$40,000; None of the answer above. The correct answer is $ -39,500 B What are the net annual operating cash flow for years 1-15 and the terminal cash flow for the year 15? -$24,000 and $55,000 -$8,000 and $37.000 $1,600 and $15,000 SO and $55,000 None of the above. The correct answer is $ (Fill in) and C. The NPV is $ -25,862 D. The decision is to Reject new purchase be NPV is negative