Coleman Aristotle Staudacher v (Student - section: 001) ACC230, Spring 2022 - Survey of Accounting Concepts New Messages Courses Help Logout Main Menu Contents Grades Chat Course Contents >> EXAM 2 > Question 7 Timer Notes Evaluate Feedback Print On January 1, 2021, X Company bought a machine for $45,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $34,000. Since they are expecting future operating costs to continue to be $34,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $49,000, operating costs with the new machine will decrease by $10,000 each year. Both machines will last for 4 more years. The current machine can be sold Immediately for $10,000 but will have no salvage value at the end of 4 years. The new machine will have a salvage value of $4,500 at the end of 4 years. Assuming a discount rate of 7%, what is the net present value of replacing the current machine with the new one? A: $-1,170 OB: $-1,696 OC: $-2,460 OD: $-3,567 OE: $-5,172 OF: $-7,499 Submit Answer Tries 0/99