One of X Company's production machines was badly damaged recently. Unfortunately, the machine was purchased just two years earlier for $50,000 The company must either repair the machine or purchase a new machine. The estimated cost of repairing the machine is $22,000, after which operating costs will be $64,000 a year. It will also require a maintenance check in the third year that is estimated to cost $2,000. A new machine will cost $85,000, but it will be more efficient than the repaired machine, with annual operating cost savings of $12,000, 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 $6,500. If it is not repaired, the damaged machine can be sold immediately for $4,000. Assuming a discount rate of 8%, 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.] OA: $11,018 OB: $12,890 OC: $15,082 OD: $17,646 OE: $20,646 F: $24,155 Submit Answer Tries 0/99