Use the following information for the next 4 questions. Bailey Corporation is considering modernizing its production by purchasing a new machine and selling an old machine. The following data have been collected on this investment: QliMashme Machine Cost $40,000 Cost $19,000 Accumulated depreciation $20,000 Estimated useful life 4 years Remaining life 4 years Salvage value in 4 years $5,000 Current salvage value $5,000 Annual cash operating costs $14,000 Salvage value in 4 years 5-0- Annual cash operating costs $18,000 The income tax rate is 40%, and the required rate of return is 16%. Depreciation is $5,000 per year for the old machine. The new machine would be depreciated $7,600 in 20x1, $5,700 in 20x2, $3,800 in 20x3, and $1,900 in 20x4. Assume Bailey would purchase the new machine in December 20x0 and dispose of the old machine in January 20x1