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X Company is considering replacing one of its machines in order to save operating costs. The following information is available: Current machine Current sales value

X Company is considering replacing one of its machines in order to save operating costs. The following information is available:

Current machine
Current sales value $4,000
Final sales value 0
Operating costs 64,000
New machine
Purchase cost $67,000
Final sales value 2,500
Operating costs 44,000

Both machines will last for 5 more years.

Assuming a discount rate of 8%, what is the incremental net present value of replacing the current machine with the new machine?image text in transcribed

X Company is considering replacing one of its machines in order to save operating costs. The following information is available: Current machine Current sales value Final sales value Operating costs New machine Purchase cost Final sales value Operating costs Both machines will last for 5 more years. Assuming a discount rate of 8%, what is the incremental net present value of replacing the current machine with the new machine? OA: $11,880|| B: $14,850 Oc: $18,562 D: $23,203 OE: $29,004 OF: $36,255 Submit Answer Tries 0/99 $4,000 0 64,000 $67,000 2,500 44,000

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