Q38. Suppose you are making a replacement decision involving an old machine with a new one. Your assistant has estimated the following incremental cash flow: lo = -43,000; operating cash flows; cf from year 1 thru year 7 =$6,400; terminal value (year 5) =$12,000. If the cost of capital =8%, the decision would be Select one: O a replace because the NPV is -$2677 o b. Do not replace, since the NPV is -$2677 c. Replace because the NPV is $13,800 od. Do not replace because the NPV is -$13,800 o e. none of the above