In this question, please ignore the time value of money (in other words, no need to transform future value into present value). In addition, please clearly show your calculation. An answer without showing calculation steps will not receive credit. BOO Carwash is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs. 10 yrs. a) After analyzing the information, an executive at BOO Carwash informs the CEO that the $500 salvage value of the old machine in 10 years is irrelevant to determine whether to buy the New machine or not. He argues that because whether we keep the Old machine or buy the New machine, the $500 amount remains the same ($500) in 10 years and cannot be changed. For that reason, the $500 is a sunk cost. Do you agree or disagree with that opinion? Explain in detail. If you disagree, what type of cost is that $500 amount? b) Calculate the cost to purchase the new machine c) Calculate the benefit if purchase the new machine d) Should BOO Carwash buy the new machine?