Company ABC intends to buy a new machine. What is the maximum price that the company can pay when NPV =0?

(a) the new machine will replace an existing old machine, the old one can be sold at $4000

(b) the new machine will reduce the after tax operation by $10000 a year for 10 years

(c) ABC will sell the new machine at the end of year 10, with an after tax salvage of 3000

(d) the new machine has a CCA rate of 30%, the corporate tax rate is 40%, discount rate is 14%