Assume that it is January 1, 2022, and that the Mendoza Company is considering the replacement of a machine that has been used for the past 3 years in a special project for the company. This project is expected to continue for an additional 5 years (.e., until the end of 2026). Mendoza will either keep the existing machine for another 5 years (8 years total) or replace the existing machine now with a new model that has a 5-year estimated life. Pertinent facts regarding this decision are as follows: Keep Existing Machine Purchase N Purchase price of machine (including transportation, setup charges, etc.) $ 170,000 $ 210,000 Useful life (determined at time of acquisition) 0 years Estimated salvage value, end of 2026" $ 22,000 $ 27.000 Expected cash operating costs, per year Variable (per unit produced/sold) $ 0.45 $0.39 Fixed costs (total) $ 27,000 $ 25,000 Estimated salvage (terminal) values January 1, 2022 $ 20,000 December 31, 2026 $ 15.000 $ 26,000 Networking capital committed at time of acquisition of existing machine (all fully recovered at end of proiect December 31, 2026) $ 32.000 5