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Assume that a company is choosing between two alternatives-keep an existing machine or replace it with a new machine. The costs associated with the two

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Assume that a company is choosing between two alternatives-keep an existing machine or replace it with a new machine. The costs associated with the two alternatives are summarized as follows. Existing Machine New Machine Purchase cost (new) $ 15, 000 $ 22,000 Remaining book value $ 6,000 Overhaul needed now $ 5,090 Annual cash operating costs $ 11, 500 $ 7,000 Salvage value (now) $ 2,000 Salvage value (eight years from now) $ 1,000 $ 6,000 Click here to view Exhibit 12B-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using the tables provided. If the company overhauls its existing machine, it will be usable for eight more years. If it buys the new machine, it will be used for eight years. Assuming a discount rate of 15%, what is the net present value of the c flows associated with keeping the existing machine? Multiple Choice O $(54,274) O $(71,274) O $(50,274) O $(56,274)

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