QUESTION 9 1 poir Tech Engineering Company is considering the purchase of a new machine to replace an existing one. The old machine was purchased 5 years ago at a cost of $20,000, and it is being depreciated on a straight-line basis to a zero salvage value over a 10-year life. The current market value of the old machine is $14,000. The new machine, which falls into the MACRS 5- year class, has an estimated life of 5 years, it costs $30,000, and Tech plans to sell the machine at the end of the fifth year for $1,000. The applicable depreciation rates are 0.20, 0.32, 0.19, 0.12, 0.11, and 0.06. The new machine is expected to generate before-tax cash savings of $3,000 per year. The company's tax rate is 40%. What is the year 5 total (operating plus terminal) cash flow of the proposed project? a. $2,320 O b. $4,150 c. $3,320 d. $2,580 e. $3,640