Question Completion Status: QUESTION Sedgewyck the director of capital budgeting for Quality Printing Inc. is aanlyzing 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 restrining life with a $4,500 salvage valise 3 years from now. The current market value of the old black and 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.your economic life, and a 57.000 salvage value. The new color printer requires a 51200 increase in inventory, and accounts payable is expected to increase by $700. The new color printer is expected to increase revenue by 58,000 per year and decrease costs by $3,000 per year. The firm has an Il percent cost of capital and n marginal tax rate of 35 percent. The MACRS S-year class uses the following percentages: 20%, 32%, 19%, 129, 119,6% (in tunt order). (Round all CFs to nearest dollar) Should the firu replace its older machine with the new machine? Oa Yes, the incremental cash flow from the new manchine is sufficient to justify investing in the new trachine. Buying the new machine would increase the value of the firm by S9,784 O. Yes, the incremental cash flow from the new machine is sufficient to justify investing in the new machine. Buying the new machine would increase the value of the firm by $8,963. Yes, the incremental cash flow from the new machine is sufficient to justify investing in the new machine. Buying the new machine would increase the value of the firm by $3,880. Yes, the incremental cash flow from the new machine is sufficient to justify investing in the new machine. Buying the new machine would increase the value of the firm by $9,329. e. None of the other answers is within $50 of the correct answer d