Main Menu |Contents Grades Chat Course Contents > EXAM 2 > Question 7 " Timer Notes Evaluate Feedback Print On January 1, 2021, X Company bought a machine for $42,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $35,000. Since they are expecting future operating costs to continue to be $35,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $46,000, operating costs with the new machine will decrease by $12,000 each year. Both machines will last for 4 more years. The current machine can be sold immediately for $9,000 but will have no salvage value at the end of 4 years. The new machine will have a salvage value of $4,500 at the end of 4 years. Assuming a discount rate of 7%, what is the net present value of replacing the current machine with the new one? A: $4,530 B: $5,662 C: $7,078 CD: $8,847 E: $11,059 OF: $13,823 Submit Answer Tries 0/99 Communication Blocked Send Feedback