Tangee Company (TC) is considering the purchase of a new equipment to replace an existing one. The old equipment 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 equipment is $14,000. The new equipment, which falls into the MACRS 5-year class, has an estimated life of 5 years, it costs $30,000, and TC plans to sell the equipment at the end of the fifth year for $1,000. The new equipment is expected to generate before-tax cash savings of $3,000 per year. The company?s tax rate is 40 percent. TC?s WACC is 11 percent