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X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $67,000 per year;

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X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $67,000 per year; operating costs with the new machine are expected to be $34,000 per year. The new machine will cost $50,000 and will last for four years, at which time it can be sold for $2,500. The current machine will also tast for four more years but will not be worth anything at that time. It cost $33,000 three years ago but is currently worth only $5,000 Assuming a discount rate of 5%, what is the incremental net present value of buying the new machine instead of keeping the current machine? OA: $16,757 OB: $24.298 OC: $35,232 OD: $51,087OE: $74,076 OF: $107,409 Tema

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