Machine B is expected to produce the following real cash flows:

Machine B is expected to produce the following real cash flows: Machine C was purchased five years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B either now or at the end of five years. The real opportunity cost of capital is 8%. When should the company replace machine C? Replace now Replace after 5 years