Montreal Construction needs to replace one of their heavy machines. They are considering buying either Mach X or Mach Y, which have the following data: Data Machine X Machine Y Life, Years 8 6 Capital Cost $255,000 $222,000 Annual Benefits 88,000 73,000 Benefits Growth Gradient 1,300 1,200 Annual Maintenance & Operating Cost 34,000 18,000 Maintenance & Operating Cost Growth Gradient 1,100 600 Salvage Value 48,000 42,000 The Accounting Department of Montreal Construction reveals that a loan (that carries 10% interest) must be secured to purchase any machine. The loan data are as follows: Data Mach X Mach Y 25% 25% Down Payment (% of Capital Cost) Loan Period, Years 8 6 Annual Loan Payment $35,848,67 $38,229.63 The Accounting Department of Montreal Construction reveals that a loan (that carries 10% interest) must be secured to purchase any machine. The loan data are as follows: Data Mach X Mach Y 25% 25% Down Payment (% of Capital Cost) Loan Period, Years 8 6 Annual Loan Payment $35,848,67 $38,229.63 Montreal Construction assumes i = 12% for their internal cash flow. The Net Present Worth (NPW) for Machine X, using only 8 years cash flow, is close to: a. $35,533 b. $62,500 c. $48,700 d. $58,684