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Ivanhoe Partners is evaluating the replacement of an older machine with either the new SuperPlus or MaxPlus machine. The market value of the original machine

Ivanhoe Partners is evaluating the replacement of an older machine with either the new SuperPlus or MaxPlus machine. The market value of the original machine is $9,000 but it has an expected salvage value of $1,000 in 5 years. The details regarding the two new machines are as follows:
\table[[Machine,Cost,Useful Life,Salvage Value,\table[[Reduced Annual Pretax],[Operating Cash Flows]]],[SuperPlus,$25,000,5 years,$2,400,$6,400
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