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On January 1, 2021, X Company bought a machine for $41,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with

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On January 1, 2021, X Company bought a machine for $41,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $34,000. Since they are expecting future operating costs to continue to be $34,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $47,000, operating costs with the new machine will decrease by $10,000 each year. Both machines will last for 6 more years. The current machine can be sold immediately for $8,000 but will have no salvage value at the end of 6 years. The new machine will have a salvage value of $5,000 at the end of 6 years. Assuming a discount rate of 6%, what is the net present value of replacing the current machine with the new one? A: $13,695|| OB: $15,475| OC: $17,487| OD: $19,760 OE: $22,329 F: $25,232

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