One of X Company's production machines was badly damaged recently. Unfortunately, the machine was purchased just three years earlier for $40,000. The company must either repair the machine or purchase a new machine. The estimated cost of repairing the machine is $21,000, after which operating costs will be $62,000 a year. It will also require a maintenance check in the third year that is estimated to cost $4,000.

A new machine will cost $82,000, but it will be more efficient than the repaired machine, with annual operating costs of only $52,000.

Both the repaired machine and the new machine will last for four years, at which time the repaired one would be worthless, and new one would be worth $7,000. If it is not repaired, the damaged machine can be sold immediately for $6,000.

Assuming a discount rate of 7%, what is the net present value of buying the new machine instead of repairing the damaged machine? [Use the present value tables in the Coursepack.]

A: $9,417

B: $12,525

C: $16,658

D: $22,155

E: $29,467

F: $39,191