. Topsider Inc. is considering the purchase of a new leather-cutting machine to replace an existing machine that has a book value of $3,000 and can be sold for $1,500. The old machine is being depreciated on a straight-line basis, and its estimated salvage value 3 years from now is zero. The new machine will reduce costs (before taxes) by $7,000 per year. The new machine has a 3-year life, it costs $14,000, and it can be sold for an expected $2,000 at the end of the third year. The new machine would be depreciated over its 3-year life using the MACRS method. Assuming a 40 percent tax rate and a required rate of return of 16 percent, find the new machine's NPV. A. -$2,822 B. $1,658 C. $4,560 D. $15,374 E. $9,821