QUESTION 17 4 points Sedgewyck, the director of capital budgeting for Quality Printing Inc. is analyzing the replacement of a black and white printer. The old black and white printer was purchased 1 year ago for $16,000: it falls into the MACRS 5-year class; and it has 3 years of remainining life with a $4.500 salvage value 3 years from now. The current market value of the old block nad white printer is $12,000. The new color printer has a price of $22,000 plus an additional costs of $1,400 for installation and 5600 for shipping. The new color printer falls into the MACRS 5-year class, has a 3-year economic life, and a $7,000 salvage value. The new color printer requires a $1200 increase in inventory, and accounts payable is expected to increase by $700. The new color printer is expected to bricrease reverse by $8.000 per year and decrease costs by $3,000 per year. The firm has an 11 percent cost of capital and a marginal tax rate of 35 percent. The MACRS 5-year class uses the following percentages: 20%, 32%, 19%, 12%, 11%, 6% (in that order). (Round all CFs to nearest dollar.) How awch more tax savings will the new machine's depreciation generate above that of the old machine for Year 2 (t = 2) a. 5560 b. S1.856 C. S1.624 d. 8924 e. None of the above