Westley Company bought Machine 1 on March 5, Year 1, for $5,000 cash. The estimated salvage was $200 and the estimated life was 11 years. On March 5, Year 2, the company learned that it could purchase a different machine for $8,000 cash. It would save the company an estimated $250 per year. The new machine would have no estimated salvage and an estimate life of 10 years. The company could sell Machine 1 for $3,000 on March 5, Year 2. Ignoring income taxes, what calculation would best assist the company in deciding whether to purchase the new machine? Explain

A. (Present value of an annuity of $250) + $3,000 - $8,000

B. (Present value of an annuity of $250) - $8,000

C. (Present value of an annuity of $250) + $3,000 - $8,000 - $5,000

D. (Present value of an annuity of $250) + $3,000 - $8,000 - $4,800