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One of X Company's production machines was badly damaged recently. Unfortunately, the machine was purchased just two years earlier for $45,000. The company must other

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One of X Company's production machines was badly damaged recently. Unfortunately, the machine was purchased just two years earlier for $45,000. The company must other repair the machine or purchase a new machine. The estimated cost of repairing the machine is $25,000, after which operating costs will be $64,000 a year. It will also require a maintenance check in the second year that is estimated to cost 22.000 A new machine will cost $83,000, but it will be more efficient than the repaired machine, with annual operating cost savings of $9,000 Toth the repaired machine and the new machine will last for six years, which time the repaired one would be worthless, and new one would be worth $5,000. 1 is not repaired, the damaged machine can be sold immediately for $5,000 Assuming discount rate of what is the net present value of buying the new machine instead of reparing the damaged machine ture the present value totes in the Coursepack) Tres 0/5

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