H. Improvements Ltd. is evaluating the replacement of an older machine, e.g. they must replace the equipment. There are two possible options: the OuOu and the Major Ouou. The existing machine was purchased a few years ago for $32,000 and currently has a book value of $8,500. If sold today, it would probably be worth $4,500. You will analyze the OuOu option only. It has a price tag of $60,000 and expected annual operating costs of $18,500. It could do the required job for seven years, at which time it could be sold for a projected $6,000. The company has a tax rate of 25 percent and its cost of capital is 14 percent. Question Use the Tax Shield Approach (not the PV of CCA Tax Shield) to calculate the NPV of the Ouou option. (nearest dollar) TEL